One of the biggest decisions that you have to make as you prepare to sell your home is determining the initial list price. Of course, it is very unlikely that the list price will wind up being the sale price – there are going to be plenty of negotiations between here and there. However, the list price is an important step, and it is one that you don’t want to get wrong. To give yourself the best chance to picking the perfect price, be sure to avoid the mistakes listed below.
Mistake #1 – Being Unrealistic
The first thing you need to do when you sit down to settle on a list price is commit to being realistic. Sure, your home has a lot of sentimental value to you, but it doesn’t have any of that kind of value to the buyer. The buyer will be picking between your home and several others, and they are going to want to get the best deal possible. Don’t make the mistake of thinking your home is worth more than it is simply because of all the great memories you have made over the years. Those memories are extremely valuable to you and your family – but they are worthless to your prospective buyers.
Mistake #2 – The Matching Principle
One of the first things that most homeowners do when they decide to sell is to look at the other houses in their neighborhood that are on the market. Makes sense, right? After all, you should be able to list your home similarly to the other houses in your neighborhood and be right in line with market rates. Or so you would think. However, this is flawed thinking, as some of the houses you are using for comparison may have been on the market for a long time. And if that is the case, they are almost certainly overpriced. So, by following along, you might be setting your house at a price that is well above the actual market value.
Mistake #3 – Ignoring the Market
The real estate market is what it is – no one is immune, or above the market. Many people think that they can do better than market rate by using some kind of trick or gimmick, or just by being a difficult negotiator. In the end, however, you are going to be dealing in the real estate market that exists in your area, for better or worse. In fact, you can’t even outwit the market if someone agrees to pay you too much for your house, because that person is almost certainly going to be turned down by their mortgage lender. The only strategy that makes sense is to list your home for a fair price based on market factors.
The best way to avoid making a pricing mistake when listing your home is to listen to the advice of a real estate professional. By trusting what you are told by a real estate agent, you should be on the right track toward a listing price that allows you to draw attention to the home while still retrieving fair value in the sale.