Picking the wrong asking price for your home can cost you a lot of money. Here are nine don’ts when coming up with your number:
DON’T ASSUME YOUR HOUSE IS WORTH THE SAME AS YOUR NEIGHBOR’S
Your neighbor’s home sold recently, but it has a pool, an updated kitchen, and a cracked foundation. Your house doesn’t have a pool, doesn’t have a cracked foundation, and has an extra floor. Comparing the two just won’t work.
2. DON’T GO WAY BACK IN TIME
Real estate prices can move up or down quickly. Old sales have little to do with the amount you should ask for your home today.
3. DON’T LOOK FAR AWAY
A recent property sale that has the exact specifications as yours doesn’t mean much if the home is in a completely different neighborhood. Sometimes property values can even vary from one block to the next.
4. DON’T PUT A PRICE ON YOUR MEMORIES
No buyer will pay more because the house was your first, your parents’, or where you raised your children.
5. DON’T START HIGH TO ALLOW ROOM FOR NEGOTIATIONS
Most home seekers don’t want to deal with unreasonable sellers, which is what they could think if you price your home too high. You may eventually have to lower the price below what would have attracted an offer if you had started out with a reasonable number.
6. DON’T THINK BUYERS WILL UNDERSTAND (OR CARE ABOUT) YOUR FINANCIAL GOALS
You may want to net a certain amount from the sale of your home to buy another property or pay down debt; unfortunately, that doesn’t matter to buyers.
7. DON’T ASSUME YOUR UPGRADES HAVE A DOLLAR-FOR-DOLLAR RETURN
A remodeled kitchen boosts your home’s value, but by how much? It could be more or less than you paid.
8. DON’T RELY ON UNRELIABLE SOURCES
You can find websites that tell you how much your home is worth. Look closely at what they say about their accuracy, though.
9. DON’T GET HUNG UP ON PRICE PER SQUARE FOOT.
While this is a thumbnail comparison, but it is far from an accurate gauge of value.
What should you do?
Hire a REALTOR®. A REALTOR® has the most accurate data for your current market and the aspects of your property that can affect your asking price. Together, you can come up with a pricing strategy for a successful sale.