Getting ready to sell your home? How you decide to price your home can play a huge factor in how well—and how quickly—it’s able to sell once it hits the real estate market. Listing your home at the right price will ensure that you find the right buyer in only a short amount of time. To maximize these chances, here are 3 home pricing mistakes you should avoid:
1. Neglecting to do research.
Many home sellers may have the tendency to want to base the price of their home off of word of mouth or the price of a listing nearby. While knowing the prices of competing homes in your neighborhood is important, it’s not the only factor you should be paying attention to when it comes to pricing. In addition, the listing price of other homes is not the best indicator of what your own home will end up selling for. Instead, do some research on the real estate market by looking at a comparative market analysis, which is a report prepared by real estate agents that review recent sales of the homes in your area that are most similar to your own. You can also invest in getting an estimate of your home’s value through a home appraisal.
2. Becoming emotionally invested.
Chances are, you have spent a lot of time in the home you’re about to sell. With that comes an emotional attachment to your home that may interfere with how you price it. Unfortunately, many of your potential buyers will likely not feel the same way about your home as you do. While the sentimental value of your home may affect what you believe should be the overall value of it, it’s important that you avoid using it as a factor when it comes to pricing.
3. Overpricing from the beginning.
How you initially price your home off the bat is extremely important, especially during the first few days that it’s on the market. Overpricing your home when it initially hits the market will turn away prospective buyers, because more often than not, the price will be out of their range. If you spend time reducing your price from that point forward, it is likely that your home may be sitting on the market for a while, and the buyers you want will have already found another home in their price range. In addition, although your home’s price will eventually appeal to buyers, when they see that your home has been on the market for a while with multiple price reductions, they may come to the conclusion that there may be something wrong with your home, and will begin to look elsewhere.
By avoiding these common pricing mistakes, you can sell your home in no time at all at a reasonable price that both you and the buyer will be satisfied with!