The home is the biggest source of money saving in one’s life with most people. So when selling a home, they not only expect to get the full money back, but also to get as much as possible. However, they often make very simple mistakes when pricing a home and because of these mistakes, they end up in selling their home with a lower price than its current market value. Here are the major pricing mistakes and how to avoid them.
Setting the sale price based on the money invested in the property:
It is not always the case where sellers can get back the full money that they have invested in their home. Some renovations will increase the value of the house and the money put in will be automatically returned when the house is sold, but some renovations only serve the owner’s needs and do not contribute to the value of the house. Normally kitchen and bathroom renovations add in value of a house. Renovations like hot bathtub or swimming pool are costly but do not add in the value of the house in general.
Setting the sale price based on financial needs:
Some people want to sell their home at a certain price in order to get enough money to buy a different home, or to pay off certain debts. In reality, buyers never interest in sellers’ needs. Therefore, if sellers set the price higher than its market value, they simply never have the chance to sell it.
Setting the sale price to make a hefty profit:
Some people price their home higher than its market value and hope for luck. They think if no one shows interests, they will lower the price and they still don’t lose anything. In fact, this is not correct. Your home will get the most attention in the first few weeks in the market. If you price your home higher than its market value, you will lose the opportunity to sell to qualified buyers. When you cannot sell your home and lower the price, buyers may think your home has issues, so you may have to lower the price below the market value to sell it.
In closing, if pricing a home higher than its market value, you not only lose the opportunity to sell your home to qualified buyers, but may also have to sell less than the market value because buyers see your listing and think, “There must be something wrong with this house since it’s been on the market for this long and the owner has to keep lowering the price.” A house that has an unrealistic price can only help the surrounding houses to be sold faster because buyers are very well informed; they will compare yours with the available houses in your area. Not to mention, you have to put in more time and face more hassle because buyers will view your house but never make an offer.
Subscribe to CommentsComment