Pricing Your Home and Myths You Can Avoid
Pricing your home correctly can be a difficult task. Of course you want to recoup all of the money you’ve spent making upgrades to your home. The following are some pricing myths that you need to take note of to have a realistic expectation when selling your home.
You always make a profit when selling your home.
The National Association of Realtors has estimated that the prices of homes will go up by 5% by the end of 2017 and potentially go up another 3.5% in 2018. These numbers vary widely by where you live and the types of upgrades you’ve made to your home. Some markets have seen a drop in value during the past year. There are many factors when determining a home’s value.
If your home is priced high, it will be easy to lower it later.
If you have priced your home high in the beginning and it sits on the market for a too long, buyers will assume that there is something wrong with the house. If the home goes through several price reduction, this assumption just gets larger and larger. Pricing your home correctly from the beginning to reduce market time is truly your best bet.
A past appraisal can help you get the right price for your home.
If you refinanced your home or have an appraisal from the previous sale of the home, you might think this is a good place to start when pricing your home. An appraisal assigns a value to your home that is based on the conditions of the market at a particular time. It does not have the ability to account for the current activity in the market. Therefore the value is most likely dated and not a good estimate of value.
At CG Realty Group we can help you to price your home correctly from the start. We can also help you obtain a “fair market value” of your home. Likely, your lender would be more interested in the fair market value of your home which we base on our knowledge of current market conditions and sales activity near your home.