Many home sellers believe myths about home pricing that eventually hurt their chances to sell their home at the highest possible price. Realtor.com® recently highlighted several of those common pricing myths, including:
1. Price your house high to make big money
An overpriced home just won’t sell. Buyers and their agents have seen many homes on the market and know the market prices. Nowadays, it is very easy for them to find past sales records online as well. An obvious, but often sad and frustrating fact is that sale price of homes will be ultimately determined by the buyers in the market, not by the seller nor by the real estate agent.
2. It’s no big deal to lower the price later
Homes in Southern California are selling faster than vegetables in a super market. Homes that have been on the market for 2 weeks or more —or that have undergone one or more price reductions—make buyers presume that something must be wrong with the house, or the house is not attractive enough for the price. It can attract buyers who offer less than the listing price because the buyer would think “No one but I would buy this home.” Price the home appropriately from the beginning for a best shot is very important.
3. Pricing your home low means you won’t make as much money
The opposite is usually true. Low-priced homes attract many buyers, which could result in a bidding-war that could drive your home’s price higher than the market price. If you don’t believe, just call me or email me. I can send you examples.
4. You can add the cost of any renovations you’ve made
While your renovations might see some return on investment, you’ll rarely recoup the whole amount. On average, you can expect to get back 64% of every dollar you spend on home improvements.
Understanding buyers’ psychology and behavior is very important when it comes to selling homes. Please contact me at firstname.lastname@example.org for free advises if you are thinking of selling your home.