Placing the Wrong Price on Your Property
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell and end up being sold at a lower price.
Confusing Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an inflated price. Lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Hiring a Realtor based on personal preference
The seller may have a Realtor in the family or know one who is a friend of a friend. While this might be great on a personal level, be sure you research their history of selling homes in your area. While knowing your Realtor personally may be an advantage, it can also be a disadvantage when you disagree on selling tactics and other important home decisions. Check their professional background before hiring.
Pricing your home based on how much profit you’d like to make
There is no doubt pricing your home can be a tricky effort if you aren’t armed with the right information. While it may seem a challenge, these factors should come into the decision:
What have the selling prices been for comparable homes in your area?
How long has it been since a comparable house has sold in your area?
What is the condition of your home and what amenities does it have?
Have you had a professional appraiser assess the value of your home before formulating your asking price?
Don’t arbitrarily pick a price based on how much you’d like to profit from the home sale. Remember, buyers are much more savvy than you think.