5 Myths Sellers Believe When Pricing Their Home
Many sellers believe myths about home pricing that in reality don't match the housing market. Last week Realtor.com highlighted several of those common pricing myths, and here they are!
1. You won't always make money on the sale of a home: Home sellers shouldn't always assume they will receive profit from the sale of a home. The National Association of REALTORS reports that sellers return greatly depends on their location and how much they paid for the home when purchased prior.
2. A high home price will net you more in the end: When selling it may be tempting to set a higher price to see if you can actually get it, in the end, you may be costing yourself the best marketing time in exchange for the remote possibility that someone will overpay for your home. In the long run, bringing the price down when it doesn't sell for the listed price, will hurt when buyers assume something is wrong with the house since the dramatic price decrease.
3. Setting a low price initially means you won't make as much money: Pricing a home on the low can actually pay off. Low-priced homes tend to prompt greater interest among buyers, potentially resulting in a bidding war within a multiple offer situation. This could increase the home's price way past the original listing price.
4. Sellers can add renovation costs to the price: Just because you completed a renovation to enhance the home, does not mean you can recoup every dime put into the project. Sellers, on average, see a 64% return on every dollar they spend on home improvements, according to Realtor.com.
5. A past appraisal will help you pinpoint the right price: An appraisal assigns your home a value based on market conditions at a specific date, so it becomes inadequate very quickly. Most lenders won't accept appraisals that are more than 60 days old.