A $1 Pricing Mistake That Can Cost Austin Home Sellers THOUSANDS!

When YOU are choosing the right price to list your Austin area home for, you are making a big decision. Price your home too high and you could run off qualified buyers. Price your home too low and you could leave money on the table. To choose the right price, most people use market statistics, comparable properties and 50-year-old pricing strategy. In episode #17 of Real Estate, Real Answers, I’m going to share with you a $1 mistake that could cost you thousands that you need to avoid to move smart and show you how to price your Austin and Round Rock home right! 

Hi guys, I’m Kyle Pfaffe and I have a passion for helping people like you make smart decisions that enable you to achieve the dreams and financial success you never thought was possible. If you have a question, please ask it in the comments below and I will answer it in another video. Today we’re talking about a $1 or $100 pricing mistake that can cost you thousands!

First, I’m going to give you a chance to pick the right price for our practice house. Let’s say your home is worth around $300,000 – let’s say $297,000 to be exact. Look at the prices to my right/left and guess what you think is the best price to list the house at. Let me know your guess and why in the comments below!

$309,000 is not the right answer mainly because you have overpriced your home and qualified buyers will overlook your home. What do you think about $299,000 or $299,999? That seems like the correct choice, right? NO! For years, the model for pricing homes, cars and many other things has been to price the home $1 to $100 under the next price point. That “OLD” way of pricing your home could cost you THOUSANDS!

In the 21st century, you have to do things differently. Think about how YOU and other buyers search for homes right now. If you search on Realtor.com or use Zillow’s app like millions of people do, you don’t search for homes that are “$299,00000.” On Realtor.com, you can search for homes with pricing parameters that jump every $50,000 or $100,000. On Zillow, you use a slider that adjusts every $5000. If you use the ancient pricing strategy and price your home for $299,000, anyone is looking for homes $300,000 or higher (a $1000 difference) is NEVER going to see your home! Your home is ONLY seen by buyers who are actually willing and able to pay LESS than what you are asking!

Don’t you think that the smart move would be to price your Austin home with today buyers and today’s search tools in mind? If you list your home for exactly $300,000, your home will be exposed to buyers looking below and above your price! That can make a huge difference in how much your home actually sells for.

If you have questions about selling your Austin area home or how to price your home to sell for the most money you can, contact me and I’ll be happy to help any way I can. Thanks for checking out Episode #17 of Real Estate, Real Answers! Make sure to LIKE my Facebook page, Move Smart Austin and subscribe with your email to my blog in the right column. 

Kyle PfaffeREALTOR® e: KPfaffe@cityscapepg.com

m: 512-636-9707 w: MoveSmartAustin.com

How Accurate is My Zillow Estimate in Austin?

Today I’m answering the question, “How accurate is the the Zillow estimate for my home in Austin?” Zillow’s home value estimator computes an estimated market value for your home based on a proprietary formula using public and private data – they call it a Zestimate (that’s a fun word to say!). In Febuary, the Zillow’s CEO sold his home – how close do you think his Zestimate was? Think about it for a minute and I’ll give you the answer in below.

Anyways, sometimes you visit Zillow to find out your home’s value just because it’s fun to imagine how much you could sell your house for and how much extra money you could put in your pocket even though you have no intention of selling. Other times you could be seriously thinking about selling your home in the Austin area and need the right information.

Can you trust that number? How accurate is it? The simple answer is that your Zestimate is probably wrong by a significant amount and putting too much faith in the sales price it gives you is dangerous. Zillow’s own fine print and reports support this. More than 60% of Zestimates are off by more than 5% and 40% are off by more than 10%! Your home’s actual value could be much higher or much lower than the number you get on Zillow. For my home, Zillow gave a number with a margin of error of $50,000 higher or lower! That’s not helpful at all!

In fact, Spencer Rascoff, the CEO of Zillow sold his home in Febuary for $700,000 less than his Zestimate – a 40% difference! ($1,750,000 to $1,005,000, 40% – do math on side). Zestimates can be so far off because they don’t have specific information. Zillow hasn’t visited your neighborhood or seen the kitchen or bathroom update you just put in so they might price your house too low. They also don’t know about that new prison that was just built behind your friend’s house that is dragging that neighborhood’s value down.

So how can you use a Zestimate? It is a tool that can help increase your real estate awareness and give you as a homeowner public access to some information. However, it can kind of be like guessing the number of gumballs in a jar – you know the jar is big and the candy is small but how many exactly are in there is anybody’s guess. If you really need to know the value of your home, don’t take your Zestimate at face value and contact a real estate pro like me. He or she can give you a pretty good idea or your home’s value in a short amount of time.

Anyways, I hope this REAL ANSWER has been helpful for you. If you are thinking of selling your home, you should contact me because I help people like you move smart and sell for more money.