One of the first decisions you make when selling your house is determining how best to price it. On the one hand, sellers do want to walk away feeling like they left money on the table. On the other, sellers do not want their homes to sit on the market with no action for months on end.
Part of the process when selling your house is sifting through what strategies to consider and which to avoid. With that in mind, you will want to avoid these seemingly helpful tips when selling your house.
Higher Price = Bigger Profit
When selling your house, it is easy for sellers to believe that it can be worth the risk to come out of the gates with a high listing price. But sellers should understand the consequences of such an action.
When you price a home too high, you reduce the buyer pool of interested (and qualified) buyers. If you are pricing your home in the next price bracket, you could find that the house does not meet the expectation of the buyers looking in this range. And because you have priced the house outside of those looking for and able to afford this home, you could find your home sitting on the market for a long time.
We Can Always Reduce
When selling your house, it is important to get the pricing correct from the start. Believing that if you start high then you can always reduce can create problems for sellers. While this might seem like it is not that big of a deal, buyers will see it differently. A drastic price reduction can signal to buyers that there are issues lurking, which will only prolong the time spent on market.
Sellers Always Make Money
Chances are that sellers will not want to hear this, but just because you are selling your house it does not mean that you will make money on the transaction. Yes, most markets have seen an appreciation in home prices. But each sale is an individual case.
Before selling your house, take the time to research your local market. What are the trends? How are other homes faring on the market? The more information you have, the better position you will be in.
Previous Appraisals are Still Relevant
Older home appraisals can help give home sellers an indication of what their home value could be, but they are not accurate. The reason for this is simple: the real estate market is prone to change quickly – and in some instances, drastically.
In order to be relevant, a home appraisal should have been completed within the last 60 days. If you are relying on an appraisal outside of this window, you will find that you are out of luck.
When selling your house, you will find that not all advice is created equal. While home sellers can find important ideas and information to help streamline their home sale, there is also a lot of information out there that can derail your sale. As you work through the process, do as much homework as possible. The more you know, the better off your overall situation will be.
