When you’re first starting the process of putting a loft on the market, setting your asking price will be one of the most difficult things you do. It might seem relatively straightforward, but if you set the wrong price you could end up losing money or scaring away potential buyers. Many inexperienced sellers make the following mistakes when pricing San Diego lofts downtown and putting them on the market.
1. Starting with Too High of a Price
The biggest mistake sellers make is overpricing their home, which is easy to do because they might just copy the asking price of their neighbor’s loft or do a quick estimate with an online website like Zillow. However, getting your price from an online estimate can lead to an overestimate, and if you price it too high you might lose out on potential buyers who think the loft is out of their range.
2. Ignoring the Location
A very common mistake is simply looking at the average cost of a home in the city when setting the price, and you could end up drastically underpricing your loft. Keep in mind certain neighborhoods increase the value of a property by thousands of dollars, and most lofts are in very trendy areas. It’s important to do a lot of specialized research for your location so you can find the highest reasonable price to set.
3. Assuming a Listing Agent Can Get the Price Quoted
Make sure to talk to several listing agents about recommended pricing, and be wary of an agent who tells you he or she can get an abnormally high bid for your loft. Some unscrupulous agents might use the lure of a high listing to get you to go with them, but they do not actually guarantee you can get as much as they quote. Select an agent who backs up suggested pricing with data instead of making wild promises.
4. Setting a Price Based on Seller Needs
When selling a loft, many sellers start by calculating the initial cost of the home and any renovations because they are thinking about what price they need to set to make a profit. Pricing is entirely based on buying trends, not seller preferences. It’s important to avoid emotion and set a price based on research of the local real estate market.
5. Dropping the Price Repeatedly
If a home has had a lot of drastic drops in listing price recently, many buyers will see this as a red flag. It’s alright to adjust the price once or twice, but repeated reductions will make it look like there is something wrong with the property. It’s better to go with a reasonable price in the first place instead of starting with a high number and regularly dropping it to try to attract more buyers. If you want to list real estate for sale in downtown San Diego, or if you’re looking for a new property to purchase, get in touch with the reliable agents at 92101 Urban Living. One of our friendly agents is awaiting your call at 619-649-0368.