Why Your House Isn't Selling - Price

Setting an appropriate listing price is the most important decision you’ll make, but many sellers let pride and desire for profit get in the way, and insist on a higher price than research supports. This is a serious  mistake.

You can present your house beautifully and it still might not sell, if it’s not priced correctly. Setting an appropriate listing price is the most important decision you’ll make, but many sellers let pride and desire for profit get in the way, and insist on a higher price than research supports. If you do this, buyers and their agents will know, and there will be fewer showings and a greatly reduced chance of selling.

Most buyers have a budget, and won’t look at houses much above their price range. If you price incorrectly, you could miss some potential buyers. Even if you reduce the price later, you’ve made a mistake because: 1) those buyers have moved on; or 2) the market has rejected your house as over-priced; or 3) you’ve created the impression that something is wrong with the house; or 4) you’re considered to be unreasonable.  If you price too high, you must continue to pay the mortgage, taxes, insurance and maintenance expenses, and will be unable to begin the next chapter of your life. Many buyers expect to negotiate a price reduction, but if you start at a reasonable point, they usually expect a smaller one.

Ask your agent for an updated analysis of your listing price, with detailed information on comparable properties that have sold within the past six to nine months, and those currently for sale. Some agents are reluctant to be forthright about pricing for fear of offending or distressing their clients, but you need their honest opinion. Just don’t kill the messenger! Compare the location, features and condition of your house with houses currently on the market and those that have recently sold. Try to be objective and adjust your listing price, if needed, especially if prices are falling, or if you have a lot of competition and need to sell quickly. The right listing price is not directly related to what you paid for the house, or to the value of the repairs or improvements you’ve made; however, enhancing the condition and presentation of your house can have a positive impact.

Smart Selling Tip:  The correct listing price is the single most important factor in determining if your house will sell. Be reasonable and objective and don’t let your emotions or desire for profit get in the way.  Remember that you and your agent don’t set the final selling price, the market does.