How to Avoid Sticker Shock When Selling Your First Home

Sticker shock usually refers to buyers’ dismay and surprise when they find out something they want is more expensive than they had anticipated. This happens often in real estate because price points are so expensive. If buyers experience intense sticker shock when trying to purchase your home, they may back out of a deal. 

Understand Real Estate Terms

Because buyers are trying not to get tricked into paying too much for a home, they will want to have a detailed breakdown of what they are paying for. That means that even if you are not familiar with real estate, you need to be knowledgeable about the different costs and fees associated with buying a home. If buyers see that you understand what you’re talking about and what different real estate fees are, they will be more likely to purchase your home. 

Seek Transparency

Selling your home can involve a lot of unexpected costs. Among these costs are any renovations and repairs, showing fees, and commission fees to real estate agents. Because of these costs, you might need to ask a higher price from your buyers in order to make what you intended to profit. 

If you are seeking a higher price, be clear with potential buyers about what you are looking for. You can even discuss with them why that is your price. Transparency will help buyers understand more where you are coming from and see if your desires align with theirs. 

Use Concrete Figures

Whenever you are working with a potential buyer, you should use concrete figures instead of abstract descriptors like “reasonable” or “cheap.” The main problem with using abstract qualifiers such as these is that no buyer will understand them the exact same way you do. For them, “reasonable” might mean tens of thousands of dollars below what you are hoping to make off of your home. By discussing concrete figures with potential buyers right away, you can determine quickly whether your home is in their price range and if they will be a good match for you. 

As with any other skill, you will get better at selling real estate the more that you do it. However, that doesn’t mean that you can’t be successful when selling your first home. Knowing how to clearly communicate with potential buyers will make the process much quicker and more productive. 
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