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Make Sure You Avoid This Bad Home Pricing Advice
Selling a home can be stressful, especially when trying to set your selling price. It can be a difficult decision to put a monetary value on your family home. Memories, history, and the number of years you put into caring for a property can sometimes weigh in on what you think your home should be worth. Our real estate agents understand this dilemma and can help you determine what a fair and equitable selling price is.
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What feels right to you – Sentimental value has no place in pricing a home for sale. What feels right to you as a selling price may not be appropriate when you consider the state of the economy or the real estate market in general. Unless you are familiar with both, the price you come up with on your own may be exceptionally high or so low that you actually lose part of your investment or equity.
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Investment plus a profit – When you buy a home, most would consider it an investment in your future. If you decide to sell, you may be tempted to sell it for the same price you bought it for, plus a little extra tacked on for profit. While this may seem reasonable, if the real estate market has changed at all, you may be setting yourself up for a major loss or a home that just won't sell because you've priced it too high.
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Include the cost of renovations – Renovations are costly, and they can increase the value of your home significantly. Adding the cost of the renovations to your selling price may seem reasonable. The fact is a buyer may not like what you've done and plan on changing it. Applying a percentage of the cost of the renovations may be reasonable, but it will depend on the market and what buyers are looking for.
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Price high if you aren't in a hurry – If you don't have a timeline when it comes to selling your home, you may be tempted to price it high. Don't waste your time. A home that is way over-priced won't get the views and will basically sit there until you lower the price so that it's similar to other Bergen County homes for sale. Look closely at the housing market in your area and try to come up with a reasonable price you are comfortable with.
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Price high because buyers will make low offers – Pricing your home high because you think a buyer will come in low at the price you are looking for doesn't usually work. Most people who do this usually get offended because the offers they do get are so low they don't sound reasonable based on the price of the house. The problem is the low offers are probably more in line with what the house should be priced.
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Don't negotiate if the offer is low – People who refuse to negotiate if they receive a low offer usually don't want to sell their house. Buying and selling real estate is meant to be a negotiating process. You can price your home a little higher if you are willing to negotiate. Know what your minimum price is and negotiate down to it. You may be surprised that people who bid low will come up higher than you think if they really want the property.
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You don't need a real estate agent – Not using a real estate agent can spell disaster. They can help you determine a fair price and assist with the negotiating process. You will get the best possible deal without all of the stress of trying to figure things out on your own.
When you have questions about how to price your home, contact our office. We can help you determine the right price that is fair to both you and the buyer. We will be able to assist with the negotiating process to make sure that both of you get what you want out of the deal.
Corporate Headquarters
7 E Central Ave, Unit 15, Pearl River, NY 10965Phone: 800-ASK-JOYCE (800-275-5692)
