Are you selling a home this year? It helps to have a plan before determining your home listing price. Pricing too high could scare buyers away.
Pricing too low, on the other hand, could mean you’re leaving money on the table.
The average down payment for a new home is $59,880. It’s not always easy to determine a fair home price, though. Making costly home pricing mistakes could lead you to miss opportunities.
Here are eight mistakes you need to avoid when selling a home. Recognizing these errors in judgment can help you determine a fair home price. You can sell without stress or leaving money on the table.
Determine your pricing strategy when selling a home by avoiding these eight mistakes today.
- Pricing Too High
One of the most common mistakes people make when selling a home is setting the asking price too high. Homeowners assume sellers will negotiate down. That’s not always the case, though.
You could lose thousands (or even tens of thousands) if you make this mistake.
You’re most likely to attract potential buyers when first listing your property on the MLS. During those first 24 to 48 hours, you’ll get the most traffic from qualified buyers. If those buyers think the listing is overpriced, they won’t look any further.
You’ll lose the chance to attract potential buyers to your listing.
Meanwhile, those buyers won’t wait until you reduce the price. They’re already busy touring other properties and making offers. They’ll focus their time and attention on properties within their price range.
Don’t make the mistake of pricing too high and hoping you can negotiate down. Instead, use the rest of these tips to determine the best home listing price.
- Worrying About Leaving Money on the Table
Some homeowners are worried about leaving money on the table. It’s a normal concern. However, pricing your home to sell isn’t a mistake.
Setting a home listing price will help potential buyers recognize they can afford your property. They’ll flock to your listing.
Try to wait about a week before you start accepting offers. Give prospective buyers the chance to view your listing. Let them decide if they want to put in an offer, too.
Chances are, you’ll get more than one offer if you remain patient.
You might even receive an above-asking-price offer. If you receive multiple offers in a hot market, it could start a bidding war.
Remain patient without making the mistake of over-asking.
- Requesting Full Value for Upgrades
Don’t make the mistake of trying to get full value for the upgrades or additions throughout your home.
Chances are, nothing in your home is really brand new. If you updated your kitchen a few years ago, you’ve used it. You can’t charge buyers as if they’re moving into a brand new home.
If buyers are willing to pay for brand-new features, they’re likely working with construction developers. They’ll probably custom-design their home based on their own preferences.
If you recently made upgrades, think about the wear and tear that’s occurred over time. Then, price accordingly.
If you request the full price, buyers might turn away.
- Ignoring Outdated Features
While you can’t ask full price for upgrades, you can’t ignore making upgrades, either. Don’t wait to renovate or update your home.
Many homebuyers will request a home inspection before they make their offer. They’ll want to recognize what changes are necessary. If there are many outdated features throughout your home, they’ll want a fair home price in return.
Take the time to make the necessary updates before selling a home.
Updating old features could make your home more desirable to buyers. You can help your property stand out from the market, too.
Otherwise, these home pricing mistakes could scare buyers away.
- Neglecting or Waiting on the Market
The average price of newly listed homes has climbed over 32.6% since 2020. In large metro areas, prices have increased by 43%.
As of April 2021, the median price for active listings was $375,000. That’s a 17.2% increase from the median active listing price last year.
Meanwhile, home buying power has increased by 21% year-over-year.
As you strive to avoid these home pricing mistakes, make sure to avoid waiting for the market to “catch up.” Some homeowners make the mistake of letting a home linger on the market. You can’t wait for the world to catch up to your asking price, though.
In fact, buyers might wonder what’s wrong with your house if it’s been on the market too long.
Don’t make the mistake of ignoring the market, either.
Take the time to research home sales prices in your neighborhood. Learning about the market will help you set an informed home listing price. If you fail to research home sales prices, you could price incorrectly.
- Not Requesting Help
You don’t have to go it alone when selling a home. Instead, consider working with a real estate agent. They can help you gather the information you need about the market.
With their help, you can set the best home listing price possible. You’ll have an easier time attracting potential buyers, too.
If you go it alone, however, you might fail to get a fair home price.
You can learn more about Triangle Real Estate to get started.
- Letting Emotions Control You
One of the worst home pricing mistakes you can make is letting your emotions take control.
Try to detach yourself from the situation. Prospective buyers won’t see your history within your previous home. They’ll want to look to the future instead.
Remember, working with a real estate agent can help you determine the best home listing price. They’ll also help you avoid making emotion-driven decisions.
- Refusing to Negotiate
Some homeowners refuse to negotiate or consider an acceptable, reasonable offer. They don’t want to settle.
However, you might struggle to find offers in the future if you refuse the initial offers you receive.
Your real estate agent can help you negotiate these deals to settle on a reasonable offer.
Price It Right: 8 Home Pricing Mistakes You Need to Avoid
Selling a home isn’t always easy. Avoiding these eight home pricing mistakes can make it a little easier. With these tips, you can settle on a reasonable price before selling your home.
Remember, you don’t have to go it alone. Consider working with an agent to get started.
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