7 Mistakes to Avoid When Pricing Your Home

    Sellers often make a major mistake when deciding how much their home should sell for. Instead of thinking about what their home would really be worth in the current marketplace, they focus on what their property is worth to them. These emotions can lead to pricing your home out of buyers’ reach and interest, leading to a longer time on the market.

    Consider the correct, objective factors when determining your house’s value to determine an asking price in line with what the market will bear. Our team can help you settle on the right asking price by providing comparable sales figures for your market. We also will give you a good idea of what buyers are looking for in your area.

    As you consider price, here are seven considerations you shouldn’t make.

    The amount you purchased it for.

    Unless you bought your home a month ago, your sales price has no bearing on what a buyer should pay. Even if you did buy your home a month ago, the purchase price may not reflect proper pricing for today. The real estate market changes constantly.

    How much you spent on repairs.

    You spent thousands to replace your roof? That’s a smart move that will certainly attract buyers, but you shouldn’t necessarily factor your cost for new shingles into your asking price. A safe and sturdy roof on a home is usually an expectation, not an enhancement that should increase the price.

    How much you spent on improvements.

    Building a new deck, adding a bathroom, or remodeling your kitchen can increase your property’s value, but don’t count on getting a dollar- for-dollar return on your investment.

    What a home just like yours sold for in a different location.

    The same size home in one neighborhood could cost much more—or less—in another one. There are many factors that go into a home’s value that can’t be compared across the state, city, or even nearby neighborhoods.

    What a home just like yours in your neighborhood sold for 18 months ago.

    Real estate markets change constantly. It’s useful to know the sales price of a similar house that sold in your area some time ago, but take it in the context of what’s going on today. A seller’s market that created bidding wars three years ago could now be a solid buyer’s market. You’ll need to set your expectations and price accordingly.

    How much you need to purchase your next home.

    Whether you’re well off or broke, your home is worth the same. Whether you’re moving up or downsizing, your home is worth the same. Whether you’ve paid off your mortgage or still owe most of the balance of the loan, your home is worth the same. Your financial situation isn’t relevant to a buyer.

    What the Web says your home is worth.

    Web sites that estimate your property’s value offer a good starting point when you’re trying to decide on an asking price. However, most home- valuation websites will tell you that their information is just a starting point and no substitute for specific market knowledge in the area.

    So, what does matter when pricing your home? Among other things, the condition of your home, the location, and the prices of comparable properties selling in the area all affect what you can ask for your property.
    When you price your home correctly, you’ll find that your home will probably sell more quickly. The best way to determine what to ask for your house is to get as much information as you can and sit down with a member of our team to help you arrive at an accurate valuation.
    For information on buying, selling, or leasing your home visit ReyesSignatureProperties.com and contact us to help you.

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    RJ Reyes

    Out of college my plan was to be a teacher and coach, but that changed after purchasing my first home. My real estate agent guided me through the home buying process and looked out for me every step of the way. She demonstrated that being a Realtor® was about so much more than selling homes; it was an opportunity to help others. It did not take me long to realize that my first home was an amazing investment, and I was excited to share what I had learned with others. I obtained my real estate license shortly after closing on my first home and have been a full time Realtor® ever since. My career in real estate has enabled me to take the talents that I was given by God, teaching and coaching, and use them to make a difference in the lives of my clients. I am driven by my passion for real estate and my love for helping others. I see every opportunity to learn something new as a way to better help my clients, and my extensive education over the years has laid a strong foundation to my success.

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