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Why Do Some Homes Sell for Less Than the Original List Price?

In 2015, homes in Santa Clarita sold for an average of 9% less than the list price. What does 9% look like? A home following this example may list for $521K but sell for only $474K, a difference of $47,000!

A home represents a sizeable investment. For many, it may be the largest asset they possess. Receiving a smaller amount than expected or that was promised can be tremendously frustrating. A family may be depending on the incoming capital for future plans. Why can there be such a big difference between a home’s final selling price and original listing price?

While there are numerous factors which can affect a home’s sales price, here are four of the major reasons:

  1. A realtor overpromises: A realtor may lead a seller to believe that their home will close for a certain amount in order to lock the homeowner into a contract. Then, when the home fails to sell at the original list price, the seller is told that the price must be lower due to changes in the market or for another reason.
  2. No marketing plan: The internet has fundamentally changed the way homes are advertised and sold. A thorough understanding and aggressive use of internet marketing tools is a must in today’s digital landscape. When a realtor has a weak marketing plan or no plan at all, a home’s list price can suffer as a result.
  3. Poor negotiation skills: Buyers are increasingly on the lookout for a good deal, discounts, and added bonuses. When it comes time to negotiate a final price, you must have a realtor who will go to bat for you. Make sure that the realtor you choose can handle any issues you expect may come up.
  4. Lack of communication: When you first meet with a realtor, it is important to create an overall plan for the sale of your home. How should the home be shown and on what schedule? If there are no offers, how long should a home sit on the market? Should a price reduction be among the first strategies to consider? While it is impossible to predict the future, questions like these can be discussed in advance to ensure that every party is on the same page.

When choosing a realtor and reviewing their record, be sure to ask for their original list price to sale price ratio. This can give you valuable information as to the result you may expect when working with a realtor. Additionally, be sure that you are given the “original” list price and not the price after reductions or alterations.

Discover What Dippy Can Do For You!

When homes are not represented by a knowledgeable realtor, sellers risk closing for substantially less than their original asking price. If you are looking to sell your home, do not hesitate to contact Santa Clarita real estate agent Dippy Chhina. Dippy is a talented negotiator and accredited home stager who possesses the skills to see that your home is sold at the right price. She is also proud to be among the only realtors in Santa Clarita who offers both 3D and virtual tours as part of a home’s comprehensive marketing plan.

Are you looking for a trusted ally in buying or selling your home? Call Dippy Real Estate at (661) 441-3304 or request a real estate consultation online.