If you are thinking about selling your home it’s imperative that you choose the right asking price. Price you home too high and buyer’s will pass it by. Price it too low and you’ll be leaving money on the table.
To maximize your profit and to sell quickly you need to get the price right. The first time.
Don’t Make These 3 Mistakes When Pricing Your Home for Sale
#1 – The worst mistake you can make it so over-price the home. Just overpricing your home by 5% can cause buyers to pass it by and cause it to languish on the market. It may take multiple price reductions to get buyers excited again.
In fact, study after study shows that overpriced homes end up selling for below market value later. In fact the best strategy is counter-intuitive. It’s to price it a little below market value and then letting buyers bid it up to market value or more.
Believe me it works! #2 – The mistake of relying on AVMs.
AVM stands for Automated Valuation Model and they are all over the internet. Sites that offer you free estimates of what your home is worth. One of the biggest mistakes is to believe these models. They are notoriously wrong.
If you really want to know what your home is worth you could hire an appraiser. Or, you could call an experienced REALTOR® like me to do a Comparative Market Analysis. This is a professional opinion of value based upon homes similar to yours which have sold in the last 90 days. This information, gathered from the Multiple Listing Service is absolutely the best way to price your home.
#3 – The mistake of pricing your home based on what you want or what you need.
The fact that you need $50,000 from the sale of your home to buy your next home means nothing. That has nothing to do with how much your home is worth.
In fact, buyers don’t care what you need or what you want. Lenders don’t care. Appraisers don’t care. Buyers today are savvy. They won’t over-pay for your home. The good news is that they will pay market value.
Need help pricing your home? Give me a call. 512-516-4666.
