Selling your home can be fun and exciting; and most sellers are looking to sell at the highest price possible. While there are numerous factors that can affect your price, many sellers fall into some very common pricing mistakes. Luckily, avoiding these mistakes is easier than you might think.
Just like when you bought your home, it’s important to do some research before you sell it. If you’re working with a real estate agent, it’s a good idea to have them run "comps" of the area. This is simply a list of comparable homes in the area that have sold recently. While the comps may not take into account the unique aspects of your home, it can give you a good idea of what home prices are in the area, and it’s a great place to start.
Pricing Too High
One of the most common mistakes sellers make is pricing their homes too high. When a home is priced to high, you'll push away buyers who are also most likely looking at the same "comps" in your neighborhood. Additionally, this could mean to your house being on the market an extended period of time which sends a bad signal to potential buyers.
Pricing Too Low
On the other hand, if your home is priced too low, you could be missing out on valuable profits. Some think that it might be beneficial to purposely price the home low in order to attract buyers and possibly create a bidding war. While, this often sounds appealing, you run the serious risk of having to sell your home for less than you expected.
So how do you make sure you don't fall into the traps of pricing your home too high or too low? You need to take a realistic look at the attractive aspects of your home while simultaneously examining the flaws too.
For example, has your home been upgraded recently? Kitchens and bathrooms often provide some of the best value for dollars spent increasing the overall price on the home.
On the contrary, does your home require costly repairs like a new roof or major plumbing work? Make sure you accurately factor these things into your overall price, because the buyer will be thinking about them.
Get the Best Price for Your Home
In order to get the best pricing on your home, it’s important to consider the "comps" of the home prices in the area combined with what your home has to offer. Your real estate agent can help you out with this process, and you can also get help from an appraiser.
With a little bit of research and patience it’s possible to avoid common pricing mistakes and receive top dollar for your home