"Help! I need to sell and my home's not selling!" Often I hear some variation of this phrase though the "!" is removed. It's usually followed by a distressed look and a tone of "learned helplessness". I'm not putting down these sellers but they should not be at the point of desperation!
The system I use is so simple yet so challenging to convince sellers about. The 5 steps I take to get the price right begins after a careful CMA takes place to determine fair market value. Even if a fair market value is determined there are time when the market decides it's still not priced right. There are also times when the seller says they want to start it higher.
5 Steps to Getting the Price RIGHT, without Losing Thousands of Dollars
1) Establish fair market value (usually the agent will do a Competitive Market Analysis on your property to determine the most reasonably expected price range your property falls into.)
2) Price your home on the higher end if you have the time, but stay within the price range established by the agent.
3) Listen to feedback! Not getting showings after a couple of weeks but other homes in your price range have gone "pending" while yours has not? This feedback tells me your price requires a reassessment. If a seller of mine has not had showings in a few weeks and I'm certain I've given the property enough exposure, the we need to attract buyers to the property- physically!
4) Reassess and reduce the price on a regular basis until you begin getting regular showings. Listen to feedback again! If they are "finding other properties more suitable", or your home "isn't ___ enough" or "needs too much work", then your price is still too high.
5) You will not underprice your home, the market will not allow it as long as you are not pressed for time! If you are getting showings and people are beginning to show interest, it's time for your agent to encourage offers and to encourage objections. Knowing objections from buyers is the agent's opportunity to handle them so that negotiation can begin.