Your house is overpriced | Welcome to my new series, 7 Reasons Why Homes Don’t Sell. The first video is: Your house is overpriced.
Your house may be overpriced for a number of reasons and there are a number of pricing strategies. In all markets for all products, price solves all problems, just like in real estate where the right price can solve a number of problem, such as the condition of your home, unappealing photography, curb appeal, cluttered and personalized homes, smells, scheduling issues. There will be a price at which your home sells.
Remember the last time you sold a used car… For example, the KBB value of a used 2014 Audi A4 is $20,192 for a car in excellent condition, $19,516 for very good, and $18,703 for good condition. A lot of people want to price their car at that excellent condition price point, which KBB says is only appropriate for 3% of all cars.
Another example occurs when you sell an old iPhone on eBay. The first thing you will do is to look at comparable listings on eBay to see what price other people have been asking for their phones. And you will take into consideration which model iPhone you have, its color, condition, memory size. All of those factors will affect how you price your iPhone.
Similarly, house sellers will look on Zillow at their Z-estimate and say their house is worth $X. But Zillow doesn’t know your kitchen is 15 years old and your house backs onto train tracks.
So how are you going to sell your used car? With blurry pictures or ones that hide its damage and condition issues? That’s not going to help you be successful. Buyers will be drawn to your price point for a car you say is in excellent condition, but when they will see it’s actually only a car in good condition, they won’t pay you the premium price that you are asking.
Buyers are more informed today. They do their research. They look at reviews. They look up prices. You can’t fool a buyer into buying a misrepresented or overpriced used car or a used iPhone, and you can’t fool a buyer in the real estate market either.
In my next video, I am going to talk about the condition of your home and how this affects your sale and your pricing strategy.