When people are experiencing Mortgage Stress or Home Repossession – selling their home can be an option.
But the biggest mistake most people make when selling their home – is overpricing it.
Let’s face it; you have put your heart and soul into your home and being emotionally involved is one of the biggest challenges sellers face when putting their house on the market.
Once it’s decided to sell the house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn’t matter what you “want,” it only matters what the market is prepared to pay.
It’s no good getting all emotional about how the market may or may not appreciate the little touches, improvements and work you have done on your home since you bought it. If a buyer believes your home is overpriced they more than likely won’t even consider looking at it or worse, they will not even make an offer because they feel you are too far apart from the market price.
Make sure you do your own research on similar houses recently sold in the same suburb, which will provide a good guide for your own property. It can be a challenging exercise, but sellers should constantly try to look at things from a buyer’s perspective and ask themselves, “Would I buy this house for this price?”
In some cases, it may be more profitable to ask for offers above a lower price for your home than what you think it is actually worth. In a seller’s market, this can stimulate competition between buyers and end up with an ultimately higher offer. Alternatively, real estate agents will be able to use their experience and knowledge of the current market in your local region to help you choose an appropriate price range for your house.
Setting the sale price too high on your house is one of the most common mistakes that can backfire considerably in reducing the number of interested buyers.
Another strategy some sellers use in this category is “waiting for the market to improve”, which does not ensure a better selling price and does not end up being a good strategy. There are hundreds of home owners who will always want to sell and they will be coming on the market each and every day. You will always have competitors and the market will always dictate the price in the end.
Remember your home is now a commodity and will soon be owned by someone else and should be considered as such.
If you are falling behind on your Mortgage Repayments – and you don’t know what to do next call Property Solutions for Australia on (02) 8006 0420 and we can help you analyze the best options for you – BEFORE it’s too late!
Alternatively you can CLICK HERE to book in a FREE Consult today.