Deciding how to price your home is one of the biggest challenges sellers face, and everyone has an opinion. Asking for the right price is important — go too high, and your home will sit on the market. Price your house too low, and it may cost you. In order to keep your listing in line with the market, our real estate agents always recommend using facts and data to support your asking price. You definitely want to steer clear of the following pricing myths:
- Myth: You Should Always Ask For More Than You Paid
While it's true home values appreciate over time, your final sale price will be largely determined by the current state of the market, the value of your home, and what buyers are willing to pay for it. Certain macroeconomic factors, property damage, or even changes to your neighborhood may cause your home value to decline. While you ideally want to earn a profit on your home sale, in some cases it may not always be possible.
- Myth: You Should Tack On The Cost Of Upgrades To Your Asking Price
Certain repairs and upgrades might increase your home value, but you probably won't be able to get away with seeking full reimbursement in your sale price. Keep in mind some upgrades see a higher return than others. Work with your real estate agent to prioritize the items that will give you the best return.
- Myth: You Should Aim High To Leave Room For Negotiations
Setting a high price might work when selling some items, but it's usually an ineffective strategy when it comes to selling a home. If your price is too high, your home will likely sit on the market, which will cause buyers to wonder if there is a problem. When a home sits on the market, buyers will also be more tempted to submit a lowball offer due.
- Myth: You Should Start High If You Don't Need To Sell Right Away
Even if you aren't in a rush to sell your home, setting your asking price high to avoid a quick sale can be a huge mistake. Not only will your home sit on the market, but when you are ready, you'll likely need to decrease the price, which may also signal a potential problem to buyers.
How To Determine Your Asking Price
Instead of setting your asking price based on what you think you should get in return, set it based on actual data. Your real estate agent can provide you with a comparable market analysis report that shows recent sales of similar homes within a one-mile radius of your property. This report can help you better understand the real estate market in your area and can provide realistic price points that help you align your own asking price with other Holland homes for sale.
Pricing your home can be challenging, but the trick is to take a Goldilocks approach (not too high, not too low). Working with a good agent is the best way to determine the right asking price. Contact us to start the process of listing your home today.