If you are getting ready to list your South Lake Tahoe home for sale, one of the most important aspects for a quick sale is pricing correctly. This is always a very tricky thing as there are a lot of homeowners who think their home for sale in South Lake Tahoe is worth more than it actually is. It could be a variety of reasons. They could have put a lot of money into a remodel. They could have bought at the height of the market and then expect to get that same amount of money back. Whatever the reasoning is, it is pertinent to AVOID making pricing mistakes. Especially since the first two weeks are the most important. That is when the listing is shiny and new and has the most eyes on it. So how can you make sure you price appropriately and avoid making some very common mistakes when coming up with that dollar figure? Read on!
PULLING THE WRONG COMPS
You may be scratching your head and wondering how you can pull the wrong comps. Comparable properties are properties within the neighborhood that are similar to yours and have actually SOLD! Too many times people think that they should look at what other properties are listed for currently. That is not an accurate way of determining what the price should be on your home for sale in Lake Tahoe. You have no clue what the other seller’s motivation is for having it priced at a certain number. It could be one of the reasons above: The think it is worth more than it is, they put a lot of money into a remodel and are trying to recoup the cost or they simply want to start high and test the market to see what they can get. Whatever the reasoning is, you do not want to waste time looking at what your neighbors are doing. When you pick a qualified South Lake Tahoe Realtor, you should listen to their advice. That includes pricing. Which brings us to the next one……..
OVERPRICING YOUR HOME FROM THE BEGINNING
The main problem with this is that it typically backfires. This of course all depends on the market but if your home is way over priced, you will likely lose valuable time on the market, becoming stale and then have to lower the price anyway. What is the harm in that? Well when buyers see that South Lake Tahoe real estate has been sitting on the market for too long, they begin to wonder what is wrong with it. You also want to avoid pricing based on predicted market trends. Yes, home prices are on the rise (up 17% since 2007!), but you cannot get too caught up in pricing your home at the 5% increase real estate experts forecasted by the end of 2016. You absolutely must price your home for the current market.
LISTENING TO ZILLOW & THEIR “ZESTIMATES”
Every South Lake Tahoe Realtor is probably groaning a little with that headline. While Zillow is a great resource for searching and finding Lake Tahoe Realtors, their Zestimates should be taken lightly. In fact, the key part of this word is “Estimate”, yet we hear people all the time say “Well, Zillow said my home was worth this”. It isn’t just Zillow either. It is any website with automated valuation models (also known as AVMs). These sites were originally made for investors that don’t have the time or means for a detailed comparison and need something quick. Even the folks that engineered these programs admit they aren’t completely accurate. In fact, Zillow has an admitted national error rate of 8%. No one is going to be able to tell you what your home is worth better than a trained South Lake Tahoe Realtor. They know the local market, can see inside the property, pull the right comps and give advise on what is best for you and your home for sale in South Lake Tahoe.
PRICING YOUR HOME BASED ON YOUR NEEDS AS A SELLER
This one is bad yet still common. Some sellers of South Lake Tahoe real estate will price based on how much they owe the bank or how much their next home is. If your home isn’t worth what your needs are, buyers will pass you over for a home that is priced accordingly. Also keep in mind that the general population is using loans to buy homes. An appraiser doesn’t set the price based on the loan amount. They set the price based on what the home is actually worth. If the gap between your price and the appraisers price is too big, you might lose a buyer. The bank only loans what the appraiser says the home is actually worth. Not what you think it is worth.
PICKING A LAKE TAHOE REALTOR THAT OFFERS THE HIGHEST LISTING PRICE
Just because an agent is willing to list your property at a certain number doesn’t mean that they are a good agent and that the home will actually sell for that price. In fact, this is where picking a qualified South Lake Tahoe realtor comes in handy. They may not have the best price you had in mind, but they will have the best strategy for selling your South Lake Tahoe real estate. After all, it isn’t about words, it is about actions. Tread lightly if they talk big numbers but stumble on how they are going to actually move the property.
NOT LISTENING TO THE MARKET
Let’s say you want to test the market at a certain price point first. After a couple weeks, listen to the market. Are you getting showings? Are you getting online traffic? Are you getting good feedback? Are you getting showings? Are you getting offers? If you can answer yes to these, you likely priced within an appropriate range. If you are answering no, it is time to listen to the market and your realtor and do a price reduction.
Are you thinking of listing your home for sale in South Lake Tahoe? Give us a call at (530) 577-0389. We would love to tell you all about what Lake Tahoe has to offer and answer any general South Lake Tahoe real estate questions.
Great information-Thanks!