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A Seller's Biggest Mistake

If you’re thinking of selling your home, you'll probably be interested in knowing about one of the most common mistakes homeowners make when they decide to sell their property. When the time comes to sell, everyone wants to get the best possible price for their home, but you need to carefully consider what sale price will ultimately net you the best result. Getting it wrong could result in a loss of what could amount to several thousand dollars in most major Canadian markets.

What’s the most common mistake home sellers usually make? That’s easy -- they ask too much for it. Some homeowners use the approach of going with the highest list price they believe the market can bear. They want to ‘test the market’ believing that they can always come down later if they really have to. It’s a common strategy among sellers who don't know any better. It’s an approach that may sound logical, but as any experienced realtor can tell you, it rarely works!

Why not? Well, the first and most obvious reason is because nothing ever sells when the price is too high. But if it doesn’t sell, you may reason that at least you tried it and there’s been no harm done. Unfortunately, that’s seldom the case. You see, even if they like the first home they see, buyers typically view several homes to see what’s out there and where their preferred choice fits in the market. The bottom line? A potential buyer may like your home, but no one spends more than what they perceive to be a fair market price. Your over-priced listing will just make other listings – your competition – look that much more attractive. Worse still, your price may drive your potential buyers to begin negotiations on another more affordable listing, or one that’s similarly priced, but has more to offer them. Either way, you’ve lost a potential buyer who will probably never come back!

There’s another down side to pricing your listing too high – no action. It’s an accepted fact that the longer a house sits on the market without selling, the more suspicious people become that there may be a reason for it. Prospective buyers become concerned that there may be some hidden problem or defect. They may also become concerned that the home may be equally hard to sell again when resale time comes along. Your property could even start to acquire the stigma of a home that is a poor value. That’s a possibility you want to avoid at all costs! Imagine how difficult it would be to negotiate a favourable selling price in such a situation. And while your house sits on the market, you’ve got the added stress and disruption to your family life of keeping of your house ‘showing ready’.

As your Coldwell Banker real estate professional will tell you, the best way to sell your home quickly and at top dollar, is to create buyer demand. You do that by pricing your home at close to its expected selling price and then just watch buyer interest heat up! You may even find yourself in the enviable position where buyers are competing for your property. As the seller of a property that’s in high demand, you’ll have the luxury of choosing the right offer, no mistake about it!

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