Pricing your own home is hard, what with all the history and hopes this magic number entails. Of course, you want to make a profit. Of course, all that money you spent installing a swimming pool or a half-bath will be recouped, because you’re leaving your digs in better shape than when you bought it, right? Right?
Well, not necessarily. Too many home sellers fall prey to myths about home pricing that seem to make sense at first, but don’t jibe with the reality of real estate markets today. Here’s some common pricing myths you’ll want to rinse from your brain so you kick off your home-selling venture with realistic expectations. It’s time to get real, folks!
- Price your house high to make big bucks – you are actually sacrificing your best marketing time in exchange for the remote possibility that someone will overpay for your home.
- If your home’s overpriced, it’s no big deal to lower it later – Sorry, but it’s not easily fixed. Why? Homes that have lingered on the market for months or undergone price reductions – make buyers presume that something must be wrong with the home; and steer clear entirely.
- Pricing your home low means you won’t make as much money – Low-priced homes drum up tons of interest, which could result in a bidding war that could drive your home’s price past your wildest dreams.
- 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 old news quickly. It’s important to understand that a previous appraisal is never a reliable source for the current value of the home.