Although it’s tempting to just stick a high value on your home and call it a day when pricing your home in a seller’s market, there’s a lot more nuance to it. You want your home to provide the best return for what you paid for, but you also want your home to sell. To make things more difficult, there are some common myths about pricing your house that simply aren’t true.
We bust some of the most common myths, and how a real estate agent can help you navigate the problem each myth addresses.
Myth: When Pricing Your Home You Want to Set the Price as High as Possible
Obviously, more money is never a bad thing, but even in a market as incredibly hot as this one, you can’t just ask for $1,000,000+ on any kind of dwelling. However, now is more important than ever to set the appropriate starting price. In many areas, it’s likely that bidding on a home will increase, so setting a smart, reasonable price to start with is crucial.
This is much easier to do with the help of a real estate agent. They can do a Comparative Market Analysis (CMA) to help you get the best picture of the prices homes other homes in your area are selling for and inform you about the best listing price.
Myth: The Internet Says Your Home Is Worth “X” so Price It as Such
The internet is an incredibly useful tool that undeniably provides a deep level of insight you wouldn’t otherwise be able to get access to. However, it’s not infallible. While the internet can show you homes similar to yours that recently sold and offers direct tools for pricing your home as well, the info is meant to be taken with a grain of salt.
Real estate agents have years of experience in understanding both the market for the area they’re in addition to what factors affect the price of your home. Both of these traits help them create the most accurate listing price possible.
Myth: Include the Exact Cost of Any Renovations in Your Listing Price
Even in a market as hot as this one, just because you did renovations doesn’t necessarily mean you should factor that into the listing of your home.
Believe it or not, not all renovations impact the value of your home. While many do, especially those that improve the condition of your home, some of the more costly renovations may not be worth it.
Get the guided help of a real estate agent who can help guide and direct you towards the remodelling or renovation projects that can and will help your home sell for even more.
Overall, it’s easy to fall into many pitfalls when pricing a home on your own. Real estate agents can help you navigate these and inform you which myths are fact and which are fiction.