Is The Price Right?

Top Pricing Mistakes

The next James Bond movie is in the works with a tentative release date set for late 2018 and again, Daniel Craig will play the role of the iconic master spy.

Just this past summer, Craig was offered $150 million to make two more films but there are rumors he’s quit the James Bond role as he wants to expand is character roles. I’m not sure but $150 million seems like a pretty good offer to me.

Some say it might be a mistake to make such an offer to convince someone to play a storied role two more times as there is yet to be any contracts signed. That’s a lot of money.

But even though you’re not going to play James Bond you still need to be aware of the mistakes some owners make when setting a list price for their home.

A common mistake is pricing a home too high because the seller has plenty of time to sell. The thinking is that someone at some point will make the right offer but there’s no rush. If the home is listed too high, while you might get some initial visits the first couple of weeks but no offers, soon the listing becomes stale and has too many “days on market.”

A home on the market longer than similar homes in the area indicates a problem either with the property or stubborn owners.

If you don’t know what other homes are selling for in your area and why, you might be leaving too much on the table. You can access some data on various websites about how much a particular property sold for but no two properties are alike.

There are always some adjustments made when comparing the value of one property with another. You can hire your own appraiser to come up with a price but what you need is a comparative market analysis prepared by a licensed real estate agent who knows your neighborhood.

Some owners price their homes because they’re desperate for the funds either to avoid a default or need the proceeds to buy yet another property. This can cause the property to be priced too low, again leaving precious dollars on the table.

And finally, don’t get too emotionally attached to a value. Owners can covet their homes and put too much emotional value in the property which doesn’t translate to true market conditions. You need to have the value presented to you by industry professionals who can provide you with a solid range as well as marketing times.