Don’t Fall Into These Common Pricing Mistakes with Your Property
Selling your house can stir up some mixed emotions. You’re excited to move to a new place, but then again a little sad to leave the old one behind. You’re also challenged with getting the house ready to sell, which brings up a whole new set of tasks you’re probably not very familiar with. One of the trickiest: pricing your real estate.
Pricing is very easy to get wrong if you rush it, or if you don’t do your research ahead of time. Over-pricing can make it difficult to find buyers while under-pricing won’t get you a fair amount of money from the listing. It’s important to know the appropriate pricing for your home to avoid these outcomes.
To help you sell your house at just the right price, we’ve created a list of the six most common pricing mistakes in real estate. Continue reading to learn more!
1. Setting the Sales Price Based On The Money Invested In the Home
Simple updates to the home, such as new paint or refinished floors, can freshen up your space without breaking the bank. These are usually on the cheaper side of home renovations and give a fresh, ready-to-be-lived-in look buyers desire.
Bigger updates, such as a full kitchen remodel or the addition of a swimming pool, are less likely to see a complete return on investment, as they don’t add a dollar-for-dollar return to the house. This is why you must consult with your real estate agent before doing any major repairs or construction. Don’t base your sales price on the dollar-for-dollar amounts put into your home because you likely won’t get it at sale.
2. Pricing Home Maintenance As Home Improvement
Home maintenance and home improvement are both related to making the home more functional, but the two aren’t to be confused when pricing your house. Most buyers expect a house to receive proper maintenance, working utilities, house and lawn care, etc. But home improvements, such as a bathroom renovation, are typically more costly. However, do remember that some home improvements have a better value when it comes time to sell than others — such as bathrooms and kitchens!
3. Pricing Quantity Over Quality In Square Footage
It’s not always true that big homes cost more than small homes when you take the quality of the house into account. To many buyers, a smaller house with upgrades holds more value than a larger house needing renovations. Price your house with its quality in mind and you’ll see a more realistic profit.
4. Ignoring Your Floor Plan or Layout
The floor plan or layout of your house may affect the selling price if it’s difficult to maneuver or doesn’t have feng shui. For example, houses with floor plans that are more closed off are less desirable than those with open layouts — as open layouts make it easier to get around and make the space feel bigger. In this case, the house with an open layout could have a higher selling price.
5. Pricing Your Home Based on Your Financial Needs
Basing the price of your home on how much you need to buy another home or to pay off loans or debts likely won’t work in your favor. If the price is too high, the chances of it attracting buyers are slim. Focus more on the actual value of the house than on your financial needs if you want a chance at selling.
Related: 8 Rules for Pricing Your Home Right
6. Relying Too Much on Appraisals
An appraisal, or online estimate, can be a great starting point for pricing your home, but that doesn’t mean it should set the exact selling price. Appraisals focus more on things like square footage, number of bedrooms and bathrooms, and size of the lot, and less on the quality of space, flow of the floor plan, and the house’s location.
These less focused aspects are what many buyers consider most important. This is why an appraisal should be considered in pricing, but more than the appraisal should be taken into account.
The Redbud Group Has Resources and Real Estate Agents Galore
It’s easy to make mistakes when pricing real estate. We want to help make it a bit easier. If you’re interested in knowing your home’s value in today’s market, fill out our form for a free Home Valuation!
If you want a stress-free selling experience, you should consider hiring a real estate agent who can walk you through the process from start to finish. At The Redbud Group, we will aid you in listing your home for a price that you, and potential buyers, will be comfortable and happy with. Use the button below or visit our website to learn more about how our Redbud Group REALTORS® can guide you through your entire home-selling journey!
