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Home » Debunking Myths on Pricing Your Home

Debunking Myths on Pricing Your Home

One of the most critical steps in selling your home is pricing it correctly. Many sellers make the mistake of relying only on their gut feel and a little knowledge of the market when setting a listing price for their home. If you’re leaning toward this line of thinking, stop and take a look at these pricing myths that can prove disastrous to your home selling efforts.

  1. To increase your home’s value, give your kitchen and bathroom a complete makeover
  2. You might have seen on TV that you can improveyour home’s profitability simply by renovating the kitchen and bathrooms. Historically, there’s some truth to this. There are countless cases where home values have increased by investing in home improvements, particularly in the kitchen and bathrooms. Nevertheless, this isn’t always true.

    In most cases, homeowners can only recoup part of the costs of home improvements. If you spend too much on renovations, you face the risk of not getting back a large part of your investment. It’s wiser to simply update your kitchen or bathroom with minor or mid-range improvements, such as resurfacing the cabinets or changing the fixtures.

    Additionally, renovating may result in a highly personalized space that will not appeal to a majority of buyers. It’s best to stay neutral and think of how most buyers will perceive the space instead of simply going by your preferences.

  3. Set a high price for your home – you can always lower it later
  4. Another common myth is that starting with ahigh list price is a good idea. On the face of it, this practice seems sound. After all, you can expect prospective buyers to always negotiate for a lower price.

    The reality is, overpricing is the biggest reason homes sit on the market longer than necessary. Buyers will avoid your home when they see that it’s priced more than properties similar to yours. Eventually, you may have to lower your price, and when you have to do it several times, buyers will think there’s something wrong with the property. In the end, you might find the need to accept a significant price cut just to get your home sold.

  5. You can use online property valuations in pricing your home
  6. Online home value calculators rely on algorithms to estimate the value of a property according to market trends, proximity to school districts, law and order, and other indices. While online estimates can give you a general idea of how much homes like yours are probably worth, they are hardly accurate.

    Instead of relying on these online calculators, get the services of an experienced Realtor. In addition to looking at comparable homes in your neighborhood, these real estate experts will also review your home’s condition, amenities, and other features that can affect your home’s desirability, and factor these in pricing your property.

  7. A real estate agent will never overprice your home
  8. Unfortunately, not all real estate agents will have your best interest at heart. There are those who will do anything to get your business, including set an unrealistically high listing price for your property. Before committing to a Realtor, ask them how they will price your home. A reliable agent should be able to back up their listing price with facts and figures, including comparable sales in your area and current market data.

Selling a home in Moore County, TX? Work only with a trusted Texas Realtor who will put your needs before anything else. Call us,the Real Estate Gals Team, at 806.930.8888 (Cheryl) or 806.884.8769 (Jayme), or get in touch with us here.