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Pricing Mistakes and How to Avoid Them
Sell your home fast by steering clear of these common pricing blunders
By Shannon Petrie, FrontDoor.com | Published: 4/02/2009
Become a successful home seller by avoiding these six pricing slip-ups sellers often make.
When selling a home, your pricing strategy can make or break your chances for a quick sale. Listing at the right price can almost guarantee that a buyer will swiftly snatch up your property, while listing at the wrong price can cause your home to sit on the market for months with not so much as a showing.
Unfortunately, pricing is not a simple process, and sellers are prone to make mistakes that waste both time and money. Don't let this happen to you; instead, make a speedy sale by avoiding these six pricing errors that sellers commonly make.
MISTAKE #1: Forgoing research
Without investigating past sales in the local market, sellers tend to base their prices on hearsay or on the listing price of the house down the street, says Leslie Sellers, president elect of the Appraisal Institute. Knowing the prices of your competition is important, but in many markets, listing prices are not a good indicator of what your home will actually sell for.
"Currently in Knoxville, Tenn., you'll find that homes typically sell for 7 to 9 percent less than they're listed for," Sellers says. "So sellers who list their homes based on other listing prices are already almost 10 percent too high about what they expect to get out of their house."
TIP: Price your home based on a comparative market analysis, a report prepared by a real estate professional that looks at recent sales of homes in your area that are similar to yours. For a fee, you can also get an estimate of your home's value with a professional home appraisal.