The Five Biggest Mistakes Homeowners Make Pricing Their Home

1. Don’t price your home on the basis of what you need to get out of it. Going this route usually results in an under priced or overpriced home, and both will cost you pain and money. The house market determines what homes will sell for, and buyers get savvy on values fast after they’ve looked at a few homes.
2. Many sellers feel they can add the cost of upgrades to their price. Unfortunately, many upgrades don’t increase the value of the home but do make it more saleable. Other upgrades typically return from 40–80 percent depending on the market. For instance, a new roof will not add to value but will help sell the home. Adding a second or third bath can increase value in many cases. An experienced realtor can tell you what improvements will give you the best return.
3. Don’t list with the agent who quotes you the highest price. Go with the agent who has the best track record and experience in your area.
4. Depending on the average selling time for your area, if you don’t get an offer in a reasonable period, bite the bullet and lower the price. You’ve made a mistake pricing your home, and the longer your home is for sale, the lower the price you’ll get. Time is not in your favor.
5. If your home needs new carpets, paint, or other upgrades, get it done as soon as possible. Don’t advertise a painting or carpet allowance, or you’ll end up getting a lower offer plus the allowance. Few buyers like to paint or carpet a home before they move in. It’s easier for them to keep looking until they find a home they don’t have to do anything to.