You’ve decided that it’s time to make a move and you are going to put your house on the market, but before you tidy-up and put a sign in the yard, consider the one thing that is most important to getting your home sold – pricing your home right.
Sellers that neglect critical market factors before determining the sales price may find themselves on the market for months without showings, or showings without feedback or offers, and may eventually pull their home off the market out of frustration. Here are some of the most common home seller misconceptions:
I spent “X” dollars on these upgrades so I should get my money back.
The truth is that some upgrades are worth more than others, and the return on your investment is rarely 100%, and is market-specific. For example, a swimming pool in south Texas may return more of your investment than a pool in Maine. Check out this website for the latest remodeling cost vs. value by region in the U.S.
My neighbor is marketing their house for “X” so that justifies my asking price.
The truth is that fair market value is not what your neighbor is asking for their home – it is what buyers have agreed to pay for it. Depending on how quickly homes are selling in your neighborhood, you need to look at the closed price for comparable homes three to six months back.
Buyers will low-ball an offer, so I need to price high for negotiating cushion.
The truth is that buyers are more informed than ever before, particularly if they are working with an agent, so they probably know fair market value before they look at the house. If you are priced too high they may not bother considering your home and you may not have many showings or offers. However if you are priced at market, you are more likely to get what you ask, and increased showings could lead to multiple-offers in a sellers market, putting you in a position of power that could get you the best price and a quick sale.
Consider the pricing pyramid to the right – a seller’s goal is to be in the “sweet spot” of fair market value to attract the most buyers.
Other factors that could impact your home value include how well it was maintained inside and out. Identical homes in the same neighborhood could have far different valuations considering the lot condition and location, landscaping, furnishings, color selections, upgrades and even odors (mold, cooking or pet odors can make a strong negative first impression).
A REALTOR is a professional real estate agent who can provide a detailed market analysis and inspection of your home to determine its estimated market value. Choosing an agent that can provide current data and a comprehensive marketing strategy will give you the best chance of selling your home quickly and at the best possible price.
If you are considering selling your home, visit KendallBexarHomes.com to request a free valuation report with an estimate of its current market value.