It can be very difficult to determine what your property is worth in the current marketplace. The property may have emotional value to the owner, and it can be difficult to pinpoint the many aspects that affect value. Here are a few common mistakes that can get in the way of impartially evaluating a property and can cause sellers to overprice their home.
Avoid relying too much on online pricing information of sold houses. They can be a perfect place to start for getting a general idea of how much real estate is worth, but they are not always accurate.
Don't assume that you can sell your house for the same price at which you purchased it. Unless you bought your house a few weeks ago, the real estate market may have changed — sometimes significantly — and the purchase price will not reflect the appropriate pricing for today.
Don't overprice your home in order to negotiate to the price on which you want to settle. Of course, you want to get an appropriate value from it, but many first-time buyers are on tight budgets and will rule out higher-priced houses. Your over-priced property may sit on the market longer, which will cost you money, and then the price may have to be reduced anyway.
Don't factor in the cost of your next house. Your listing price should not reflect how much money you'd need to purchase your next property. The price of the house should be the same whether you are wealthy or broke. Your financial situation is irrelevant to the potential buyer of the property.
These are just a few common mistakes you should avoid when arriving at a listing price for your home. Listed at the right price, you will get a fair amount from the sale of the house, and the buyer will be getting a reasonable price, too. As always, your local real estate professional will have the best advice on getting your home ready for the market and selling for the best price. Looking for the next step after your home is under a sale contract? Contact me to discuss your options.