When it comes to sales activity, Irvine is one of the leading regional housing markets in the United States, but this distinction is not expected to last forever. According to an article published by the Orange County Register in June 2018, Irvine is on the list of housing markets expected to cool down by the year 2020. Until then, sellers will continue to have the upper hand, but only if they apply the right pricing strategy when listing their properties on the market. The current trend of rising prices, high demand, and short supply of available Irvine, CA, real estate is expected to prevail in 2018 and 2019, and here are a few pricing mistakes prospective home sellers should avoid.
1. Failing to Perform a Comparative Market Analysis
In the current Irvine market conditions, the worst pricing mistake sellers can make is to go by the numbers found on websites such as Zillow. The best method for initial pricing discussion is to allow a real estate professional to perform a comparative market analysis (CMA), which provides more than just a baseline figure. It suggests an approximation of the value a property appraiser will determine for prospective buyers and mortgage lenders.
2. Failing to Conduct Proper Research
A CMA is mostly based on automated modeling that allows certain parameters for adjustment. To determine a good price, adequate market research should be conducted. The difference between CMA pricing before and after market research can be thousands of dollars. Housing markets can react very quickly to various economic factors, which means research should take recent events into account.
3. Starting Off with a High Price
When market conditions favor sellers, the ideal situation is to attract bidders and encourage them to compete against each other, and the best way to accomplish this is by setting a comfortable price. If prices are set too high in a sellers’ market, competitive bidders will look elsewhere.
4. Becoming Overconfident in a Sellers’ Market
The “for sale by owner” (FSBO) approach tends to be higher amid a hot real estate market, but the true effectiveness of FSBO transactions can be found in the numbers compiled by the National Association of Realtors each year. On average, FSBO listings are higher in sellers’ markets such as Irvine, but they take up to 12 weeks longer to reach the closing table when compared to listings handled by real estate professionals. Moreover, they tend to sell for 13 percent less on average, and they are often subject to price reductions.
5. Letting Emotions Interfere
Some homeowners invest more than money and effort into their properties. They also build emotional capital they may not want to lose. Sellers who have raised their families in an Irvine home may feel emotionally attached to their properties, and this could interfere with the pricing and selling process. The ideal way to avoid this situation is to let real estate professionals handle everything objectively.
Make sure to avoid the mistakes above when listing a house for sale in Irvine, CA. One of the other major mistakes you don’t want to make is working with the wrong real estate agent. If you’re looking to sell or purchase a home in Irvine, get in touch with the trusted agents at Irvine Residential Living. Call 714-454-6304 today.