When selling your home, knowing how to price it is essential. Understanding what to look for and how to avoid mistakes helps you have a better transaction. Beach Homes Realty CEO Glenn Phillips discusses 5 pricing errors made by beach home sellers.
- Trusting Websites Offering AVMs: AVM stands for automated valuation models. Websites that utilize AVMs give you an estimated value of your home based on the information you put in. However, due to the unique nuances of beach properties, AVMs struggle to price them accurately. These automated systems aren’t built for niche and unusual properties, and many features often go under the radar. Many factors, such as modernity, upgrades to the home, location, and more, aren’t typically factored in by the AVMs.
- Using Prices of Currently Listed Properties: Just because you see a property listed for a certain price doesn’t mean you should list it at the same price. The homes currently on the market that haven’t sold could be overpriced. Using the same pricing could lead to your home sitting on the market as well. Instead, doing a market analysis of properties that have sold will give you a better idea of appropriate pricing.
- “I Need to Get…”: Be weary of thinking you need to get a certain price. This line of thinking disconnects you from the current market. Thinking like this ignores the home’s actual value. Try to put yourself in the buyer’s position. They aren’t concerned with what you “need” to get, but with what the home is actually worth.
- Emotional Reasoning: Living in your home can make you very attached to it. In fact, there are even studies showing that we tend to value things we own more than someone else’s. This happens even more so with beach property. You may have attached your feelings, memories, and experiences to the house. However, selling a house is a business transaction, and emotions shouldn’t affect pricing.
- Failing to Consult a Beach Expert Agent: Beach real estate is different from typical residential real estate. An expert beach agent understands the nuances of beach real estate. Agents who aren’t experts in beach properties may not know what questions to ask during the transaction. Knowing the nuances and differences of beach real estate will save you money when selling.
Setting a fair price for your house is crucial when selling. A better transaction results from knowing what to look for and how to avoid errors. Avoiding these errors will help you save money and sell your home faster. Visit beach-homes.com, where you can find expert beach agents who will help you price your home.