Ask yourself how much your home is worth, and you may tend to see things in terms of personal history.
Especially if you’ve lived there for a while, it will be hard to look at things objectively. There’s the garden you planted, the hardwood flooring you hand-installed, and the years of memories that no one can put a price tag on.
But, the truth is, when it comes to pricing your home, you have to look at this objectively. Sure, there’s a buyer out there who will love your home as much as you do, but not if you scare him or her away before seeing it.
The mistake of overpricing could mean:
*Prolonged time on the market.
*Few calls or showings, if any.
*Discouragement as you wait for a buyer.
*Ultimately: money, time, and energy lost.
Let’s look at the facts.
What is your home really worth? Whatever a buyer is willing to pay for it.
In addition to the info here, you will want to keep these extra tips in mind:
- Coming up with a price is really an educated guess.
- Homes sell for what buyers will pay.
- Stubborn overpricing benefits no one.
A comparison of similar homes; a consideration of the average time on the market; a recognition of the percentage below/above asking price homes are selling for; a recognition of homes currently for sale; and an awareness of market trends and movements all come into play. This research leads to a price range that should appeal to buyers. It is just a range though, a guess based on other properties and on the market. Stay flexible.
Competition affects your home’s selling price. If you list your home and receive dozens of offers immediately, you’re probably underpriced compared to the others on the market. A bidding war will only benefit you, though, as it will drive up your property’s market value.
You’ll keep a home you want to sell, the buyers won’t get the home they want to purchase and no one wins. The financial losses involved with mortgage payments, the burden of keeping your home showcase-worthy and the stress of wanting to sell will discourage you.
Don’t let it happen by refusing to see the conditions around you. Price competitively!