Pricing Your Home: Avoid These Common Mistakes
When selling your home, one of the most important things to consider is your asking price. If your property is priced too low, you sell yourself short and may get low-quality offers. On the other hand, if you’re priced too high, you may get no offers at all. Here are five pricing mistakes to avoid to ensure you’re getting the most out of your sale:
1. Basing your price on another home’s asking price
Since homeowners can ask whatever they want for their property, it’s possible your neighbour has priced incorrectly, and you don’t want to be caught making the same mistake. Instead, base your price on what similar homes in your neighbourhood have recently sold for and be sure to look at more than one.
2. Basing your price on recent renovations
Renovations do not necessarily mean a 100 per cent return on investment when you sell, especially if the renovation was specific to your tastes, which could be off-putting to potential buyers. If you are renovating for the purpose of increasing sale price, make sure the renovations are neutral.
3. Basing your price on how much money you need
Oftentimes, sellers who have bought a new home before they sell the old one say, “I need to sell my home for $X in order to pay for my new one.” Likewise, some homeowners say, “I need to sell for $X in order to make a profit on the house.” The problem with this line of thinking is that it bears no relationship to the market. These types of buyers tend to languish on the market before eventually selling for a much lower price; better to save yourself the additional mortgage payments by setting a fair price from the start
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 to the detached home that recently sold around the corner; you need to compare apples to apples. The same goes for the neighbourhood you live in — it’s usually pointless to compare.
5. Starting with a “Let’s try this” price
The most common mistake homeowners make is starting at a higher price “just to see what happens.” If you know how much you should realistically receive from the sale, then you should price your home accordingly right from the start. When you overprice your newly-listed home, you eliminate many buyers who see that your inflated price is out of their budget.
So much of your success as a seller depends on setting the right price for your home and market. Remember that the longer you’ve been for sale and the more times you’ve had to reduce your price, the more likely buyers are to think there must be something wrong with your property. If you want to be confident about your price, we always recommend getting assistance from real estate professionals.
Originally published in the Canstar Community Newspapers on February 21, 2017. Republished with permission. Content written by ComFree Commonsense Network.