When it comes to selling your home, your asking price can make all the difference. Price it right and it will sell quickly – and you can do so easily by avoiding these five mistakes most people make when pricing their home.
Mistake #1: Basing your price on another home’s asking price
Basing your home’s asking price on what the neighbor around the corner is asking can be a big mistake. Homeowners are able to ask whatever amount they want for their home.
Your neighbor might be asking $100,000 more than they should. If you are basing your price on that amount, your chances of selling will decrease. You should base your price on what a similar home has recently sold for.
Mistake #2: Basing your price on recent renovations
If you bought your home two years ago and installed a new kitchen worth $50,000, that does not mean that you can price your home for an extra $75,000. Renovations do not necessarily mean a 100% ROI when you sell, especially if the renovation was specific to your taste.
Mistake #3: Basing your price on how much money you need
This is a very common mistake home sellers make. Many sellers have already bought a new home and think, I need to sell my home for $X in order to pay for my new home. Or perhaps a seller might not have a lot of equity in their home and they think, I need to sell for $X in order to make a profit on my home.
However, buyers are not concerned with a seller’s personal situation. Buyers only want to buy a home that is fairly priced, based on what other homes have sold for in the neighborhood.
Mistake #4: Basing your price on a different type of home or a home in a different location
If you own a semi-detached, you should not be comparing your home with a detached that sold around the corner. You have to compare apples with apples.
The same goes for the neighborhood that you live in: You can’t compare your detached home with a detached home in a better neighborhood.
Mistake #5: Starting with a “Let’s Try This” price
By far the most common mistake homeowners make is starting at a higher price first. Saying “let’s ask for $25,000 more and see what happens” can be a big mistake.
If you know the value of your home and you know how much money you should realistically receive from the sale of your home, then you should price your home close to that price and expect to sell your home close to that price.
By overpricing your home at the start of your sale, you eliminate many buyers who will see that your “inflated price” is out of their budget, and they’ll move on to another home.
Be sure to make use of ComFree’s tools and services when setting your sale price.
Ready to sell your home? Visit ComFree.com to get started today.