Price isn’t everything when you’re trying to sell your home. But if you price your property poorly, you’ll put off a large number of potential buyers right from the start. Here are seven mistakes you should definitely avoid when deciding how much to list your home for.
Starting Too High
It’s tempting to try and get the most out of your property by pricing it at the upper end of the scale. While you don’t want to undersell, being too optimistic is counterproductive.
You’ll deter interest in those vital first few weeks after listing. Although you can reduce the price later, the damage has often been done. People who remember your property will wonder why a large reduction was necessary, and this can lead to suspicion.
Going Too Low
But on the other hand, you need to set your starting price high enough to give you flexibility. Nearly every potential buyer will expect to bargain the price down, and if you’re already at your lower limit, you won’t have the room to allow this. Rejecting an offer out of hand kills sales prospects, so leave yourself a buffer to play with.
Valuing with Emotion
Don’t let your emotions affect your valuation of the property. Your happy memories don’t mean anything to potential buyers. They’ll only pay what the market requires.
Overestimating the Value of Improvements
You can’t realistically expect to recoup the full cost of your improvements over the years. Very few renovation projects will pay for themselves, as the depreciation clock starts ticking as soon as the work has been completed.
Also bear in mind that some home improvements can actually drive the price downward. For example, a swimming pool might be a valuable addition in your eyes, but to another person, it could be a source of hassle and costly maintenance.
There’s a theory that listing at an unusual price such as $459,643 makes a property stand out from those around it. However, this doesn’t stand up to scrutiny.
Most buyers will be checking several properties and they’ll have a round figure in mind. A complicated price won’t make the same emotional impact as the one they’re thinking of, and they’re less likely to remember it for future reference.
Stick to common price levels that people search for, and they’re more likely to add your property to their shortlist for later viewing.
Relying on Other Active Listings
It’s essential to price your home in line with the local market. However, basing your pricing on lists of other properties for sale is a mistake.
What really matters are the closing prices of homes which have actually sold in recent months. These can be significantly lower than the prices attached to unsold homes which have attracted little interest. Contact an agent who can help you determine the value of your home.
Not Taking Your Agent’s Advice
Lastly, your real estate agent will have an informed view on what your property is worth, and it’s important to listen to this. You’ll have the final word when listing, but it pays to take expert advice into account. It’s in everyone’s interests to sell as quickly as possible for the highest realistic price.
Selling a home always relies on a little luck as well as presenting a desirable property. However, avoiding these pricing mistakes will help put you at the front of the queue when potential buyers are browsing the local listings.