When it comes to listing your home on the market, steer clear of these seven pricing myths:
1. You should price high so that you have room to negotiate down. Some assume that the best way to secure top dollar is to overprice your property. The idea behind this is that even if buyers ask to pay less, you’ll still wind up earning fair market value. Unfortunately, overpriced homes actually tend to repel buyers. Following this strategy, you’ll likely either have to go through a series of price reductions or have to take your home off the market altogether.
2. You might leave money on the table by pricing too close to market value. Some sellers fear that putting their home on the market for a price that too closely resembles its true value might mean walking away with less money than it’s worth. In actuality, doing this can generate buyer interest and, potentially, help you to incite a bidding war.
3. If you aren’t seeing the results, you can always relist later to earn a better deal. This is true in some cases, but it’s important to realize that timing does matter. The market is changing all the time, and conditions may actually worsen (rather than improve) between now and the time you decide to relist.
4. You should set a firm minimum price. Unless accepting a particular price is truly going to put you into hardship, it’s a good idea to be flexible. With the right agent advocating for your wants and needs, you won’t need to worry about getting lowballed, but, even so, you shouldn’t draw a line in the sand if it’s going to cost you a sale.
5. Offers should always be similar to your asking price. Ultimately, buyers are the ones who dictate what your home is worth. While the goal is to earn as close a figure to your list price as possible, this isn’t always feasible. The buyer is also trying to earn a good deal, just like you are.
6. Outdated features won’t impact the selling price. Very few buyers will accept a home with decades-old systems and appliances for the same price as a property with brand-new ones. Your house doesn’t need to be fully decked out with the latest design trends and the newest home features, but it should be on par with other properties in your neighborhood.
7. You shouldn’t counter low offers. If anyone tells you not to bother with a low offer, ignore it. This advice is flat-out wrong. Buyers expect you to counter their offer, so their first offer might not always reflect exactly what they’re willing to give. In short: Don’t give up before you’ve even tried to negotiate.
If you’d like more information about the right way to price your home, feel free to give us a call or send us an email. We look forward to hearing from you soon.