Pricing Mistakes Common
Even though the market for Costa Mesa real estate homes is super hot right now, you still have to price the home within reason for it to sell. There is not any pricing policy out there, so technically you could ask $100,000,000 for your home. Expect to get it sold? That’s a whole different expectation.
I have talked about it before in a
past post where I experienced it firsthand – My seller wouldn’t price the house with my recommendation of where I thought it would sell, and he wouldn’t recognize the fact that his house needed a complete makeover and was in a poor location. Pricing your Costa Mesa home is ultra important. Ultimately that will cost you in the long run. I remember in this situation we had an offer early in the process at $680,000 (list price was $750,000), and the buyer asked for a repairs concession of several thousand dollars. The seller turned him down on the concession, and the house went back on the market. What did the house eventually sell for? $550,000!
Here are the common pricing mistakes that I see in Costa Mesa real estate:
- Reviewing the numbers of recently sold homes, and asking 10-20% more than the most recent comparable sale. Ultimately, you can’t beat the bank’s appraiser. If your next door neighbor sold their house for $550,000, and you have the same model in the same condition, what do you think your Costa Mesa real estate home is worth?
- If you have overpriced your Costa Mesa home from the beginning, you need to adjust fast. No showings? Other Brokers saying the price is too high? Adjust quickly! Studies show that Costa Mesa real estate homes priced right from the beginning sell higher and closer to asking price when priced right from the start. Homes that sit on the market for a long time get stigmatized and people will think something is wrong with them.
- Using an unusual number as a price. Prices like $456,752 won’t help you when buyers are searching for your listing. Using numbers like a 4 or an 8 just because they have a “zen” feeling won’t help either. Round numbers are what people most closely relate to.
Pricing Your Costa Mesa Home
- Pricing using Range Pricing. I have used it before, but it really confuses people looking for Costa Mesa real estate homes. It’s pricing like: “Offered at $419,000 – $459,000”. Buyers always say they will pay the low price!! As I have said, I have used it, and I really don’t like it because it doesn’t work.
- Refusing to negotiate – After you price your home, unless you have a bidding war, you should always expect to negotiate. Buyers want to feel like they are paying the right price in their mind (believe me, they know the comps!), and a seller also needs to feel like they are getting a good return on their home. Negotiating to common ground always works best.
Here’s a cool infographic below of the most common mistakes in California; If you need help in Costa Mesa real estate please contact Colin at
(714) 743-9882 or
E-mail me.
