How to price your home for sale, too much, too little or just right?
New homes hit the market and are sold every day. Are you thinking of selling your home? Want to know the secret to giving your home the best chance to be the Hot Listing in town? Price It Right!!
Wrong valuation assumptions can lead to bad decisions about whether to sell, when to sell and how to price a property. The result could be delays in selling and lowering the price below the amount needed to pay off the existing mortgage plus closing costs and make the down payment on a new one. For buyers, bad information can lead to overpaying for a house on the verge of a value decline or losing a house by making an ill-advised offer.
Owners Overvalue on average by as much as 12%! Ouch!
According to a new study by the Journal of Housing Economics by economists at CUNY and the City of New York found that homeowners typically overprice their homes by an average of 8 percent. Those homeowners who bought during boom times tend to overestimate their value even more, as high as 12 percent. Owners who bought during the boom are inflating the value of their homes an average of $26,328 on a median priced existing home ($219,400).
We as Realtors understand the impulse to value our homes for more than they are worth, most of us are homeowners as well. We have to put on our business hats and not our emotional homeowner hat. This is about selling your house for the most money it can get in the current market. We are here to help you, trust us if we could sell every home for 5 times its market value we would, we work on commission after all.
A good Realtor will tell you that pricing your home appropriately from the start is the most critical thing to do to get it sold quickly and at the highest price. Research shows(and we will tell you) that overpricing your home and then dropping the price several times while it goes stale on the market will typically lead to a MUCH lower finial selling price. The longer a home stays on the market, the less desirable it appears to other agents and buyers and the less they are likely to offer. Generally the more quickly a home sells the closer(or above) to the asking price the seller will receive, the older the listing the less money will be offered.
Here is the tough news, ready? Your home is not worth what you paid for it, what you owe on it, the cost of the improvements you made or how much you think it is worth. It is worth what a buyer who is looking for your kind of home will pay for it in the current market.
Choose the right Realtor to help you sell your home and then listen to their advice and your transaction is more likely to go through quickly and smoothly from the beginning. We are here to help you and we want to get the best price on your house.