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Avoid this Home Pricing Mistake

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By : Jason Deines    99 or more times read
Like most types of investments, real estate appreciates and depreciates depending on the market. However, real estate tends to provide for a good investment in the long run. When it comes to selling your home it is important to know how to get the most return for your investment.

Sellers are often guilty for over-pricing their home, especially when the real estate market is in a slump. Because of this the home sits on the market for an extended period of time developing a bad reputation and in the end selling for less than it would of if it was priced correctly from the get go.

Common reasons homes are over-priced include:

∑ Poor understanding of local competition
∑ Seller requires a certain dollar amount to cover personal expenses
∑ Inadequate market analysis
∑ Home is priced based on emotion and memories
∑ The cost of recent home improvements are added into the price

When mistakes like these are made the asking price is inflated and will seldom be close to the selling price. The selling price typically ends up being the fair market value of the home. To simplify matters, the market value is what a buyer is willing to offer and seller is willing to accept for the purchase of the home.

If you find yourself forced into selling your home in a down real estate market get the most you can by pricing your home competitively and inline with current market conditions.

Price your home based on the current market trend and consider the quality, size, and condition of your home in regard to location. Donít price your home on last monthsí values or what you think your home will be worth next month. Focus on the here and now.

A real estate broker, agent, or sales associate can help you determine a solid asking price for your home. Also, it is important to consider the financing side of things. Homebuyers will be unable to acquire funding form a bank if the bankís appraisal doesnít compliment the asking price.

Most buyers arenít out to take advantage of home sellers. They simply want to get a quality home for the best price and demand and supply in each market area will set the price.

By pricing your home competitively you will save time, money, and heartache.

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