1. If you price your house high you will make a lot of money:
If you think you can price your house above the comps with a sky high asking price, soon you will realize your house just won’t sell.
You have a window of opportunity to come out of the marketing gates priced right and overpricing your home in the hopes that someone might overpay for your home is not a solid selling plan.
2. Price Your Home High - If It Does Not Sell Lower it - No Big Deal:
Overpricing your home isn't easily fixed just by lowering it later on. Why you ask? Homes that have lingered on the market for months—or that have undergone one or more price reductions—make buyers presume that something must be wrong with it. As such, they might still steer clear, or offer even less than the price you're now asking.Price your home appropriately from the beginning for your best shot at having a quick and easy sale.
3. A Low Home Price Means You Won’t Make As Much Money:
Sometimes sellers worry if they price their home under market value - that’s what they’ll get. While this seems counterintuitive usually this strategy pays off big time.Low priced homes typically receive a lot of interest. A low priced home may even result in a bidding war you can take advantage of.
4. You can add the cost of any renovations you've made:
While your renovations might see some return on investment, you'll rarely recoup the whole amount. On average, you can expect to get back 64% of every dollar you spend on home improvements. Plus that profit can vary greatly based on which renovation you do.It’s important to focus on renovations and improvements you can do to help improve the quality of your home. But do not expect to be able to add the entire cost to your listing price.
5. Your past appraisal will tell you what to price your home at:
This is just not true. An appraisal assigns your home a value based on market conditions at a specific date, so it becomes old news very quickly. Lenders typically won’t accept appraisals that are more than 60 days old.