The potential revenue may be alluring but a buyer’s agent will likely know when a property is overpriced. Overpriced properties have a greater chance to sit on the market longer and can lead to future problems as Myth #2 describes. Listing at an appropriate price can lead to a quicker and easier sale which is especially beneficial if you’re purchasing a new home.
Myth #2: It’s no big deal to lower the price later on an overpriced home
Homes that stick around on the market and/or have had multiple price reductions can be a red flag for buyers. Buyers may infer that there must be something wrong with the home and could cross it off their list or make an offer lower than the asking price.
Myth #3: Pricing a home low means making less
Pricing your home on the low end can be a good strategy to yield a lot of interest. A lower priced home could lead to a bidding war which can ultimately drive up the price and encourage buyers to submit offers with favorable terms for the seller.
Myth #4: A past appraisal can determine the right list price
A previous appraisal from when you bought or refinanced your home is not a reliable source for pricing your home. An appraisal determines the value of your home based on market conditions at a given point of time. Since the market changes constantly, an appraisal only a few months old can be inaccurate.
To determine a realistic price of what your home could sell for in the current marketplace, it is advised to have a local realtor prepare a comparative home market analysis. The market analysis will reveal the price range that similar homes are listed at and what other similar homes have recently sold for. To receive your complimentary comparative home market analysis, please contact us.