With the home sales market in a stage of growth, now is one of the best times to sell your home. Low inventory means that it’s a true seller’s market and getting your house listed before further interest rate hikes will give you access to a larger pool of potential buyers.
When you are selling your home, overpricing is a mistake that you should avoid at all costs.
The Hard Sell Doesn’t Work in Today’s Market
It was once common for homeowners to go to market with a price that was up to 20% higher than the minimum price they would be prepared to settle for.
That won’t work today, because low inventory means that buyers are looking for deals, rather than looking for a chance to haggle. Overpricing will turn buyers away and reduce the interest in your home. Your home should sell for as close to professional valuation as possible.
Forget Your Emotions When You Are Pricing Your Home
Getting a home valuation can be a humbling experience. With all the emotion attached to your home, and maybe even DIY or expensive professional renovations, you might feel like you’re getting short changed.
The reality is that improvements can help a home to sell faster, but they don’t necessarily add any significant monetary value. If you are making improvements before the sale, the best plan is to go for the most affordable ones that raise appeal. This way you won’t be disappointed or even offended when you receive your valuation figure.
Research Your Neighborhood and Local Market
If you want to sell so that you can move on to your next investment, you’ll need to be competitive with the market.
Look at the average selling price in your neighborhood, or in nearby neighborhoods if there isn’t enough data available. Pricing slightly below the other homes on the market can make a big difference, just as long as you are still within a reasonable profit window. Listing your home for $1000 – $5000 less than comparable homes can have a huge psychological influence that will make your listing more attractive to buyers.
A house is one of the biggest investments that you will ever make, so you should aim for the best possible return when you sell yours. Just remember to keep things in perspective and understand that market conditions and buyer expectations can be significantly different to your own opinions.
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