Pricing Your Home Right – Avoid These Common Mistakes

Week 2: Pricing Your Home Right – Avoid These Common Mistakes

Introduction:
One of the most crucial decisions when selling your home is setting the right price. Overpricing can scare away buyers, while underpricing could mean leaving money on the table. Here’s how to avoid costly pricing mistakes.

Mistake 1: Overpricing Your Home

• Many sellers believe pricing high leaves room for negotiation, but in reality, overpriced homes sit longer on the market and eventually sell for less.
• Buyers compare homes in their price range, and an overpriced home may not even be considered.

Mistake 2: Ignoring Market Trends

• Real estate markets fluctuate based on supply and demand.
• Research comparable sales (or work with an agent) to determine the right price range.

Mistake 3: Relying on Emotional Pricing

• A home’s sentimental value doesn’t translate to market value.
• Buyers are looking for the best deal, not your personal attachment to the property.

Mistake 4: Not Factoring in Home Improvements Correctly

• Just because you spent money on upgrades doesn’t mean you’ll recoup the full cost.
• Some renovations add more value than others—know which ones give the best return.

Mistake 5: Not Considering a Pricing Strategy

• Strategies like pricing just below a key threshold (e.g., $399,900 instead of $405,000) can attract more interest.
• Pricing competitively from the start can lead to multiple offers.