If you are a property owner planning to put their house for sale in the market, you need to come up with a sales price. The list price is the seller’s asking or advertised price that would help people decide whether the property is within their budget. For most homeowners, this is where the struggle comes in.
Two major—and unfortunately contrasting—factors may have caused you that struggle. One, you know that you are the best person to decide on your house price since you are the property owner who understands your needs and your house’s actual value. At the same time, the second fact is that you know that you do not know anything about setting an actual price!
This confusion mostly leaves you relying on a listing agent who would suggest a list price that would work best for your property. However, some agents forget that the listing price can attract or deter buyers. Of course, they want to help you get the best pricing to earn you good money. Nevertheless, it would be best if you find a good balance between the two concerns.
Finding the proper property pricing depends on several factors, and as a first-timer, learning about the common pricing mistakes can help you better decide. Here are some of them that you should know:
Mistake 1: Relying on The Payment You Want
The number one method that property owners use when determining an asking price is basing it on the amount they want to get. Again, other factors would determine the price of a property. That includes the current economic conditions, your house’s current market value, what the people are willing to pay, and the property’s potential appraisal. Without considering these factors—primarily your market’s preferences—you would find it challenging to find a buyer.
Mistake 2: Copying How Your Neighbors Priced Their Property
Indeed, home prices may also be categorized depending on location—but it is not the sole basis for identifying a list price. Your house is different from your neighbor’s house! You have different home values and varying house features. Perhaps you have done more upgrades than they did with their house, or maybe their asking price was determined years back!
Basing your listing price on your neighbor’s property pricing would only make sense if you share the same house condition, size, and configuration. Otherwise, you are comparing two completely different properties and choosing to price them as one.
Mistake 3: Pricing the Property Based on the Cost Per Square Foot
When it comes to home construction, the typical pricing method is based on the floor size. However, this would not be fair as the only basis when selling an entire property! It could serve as a good starting point, but you also need to factor in other elements.
For example, the demand is one factor to know. You may have a two-story house, but people in that area might be more inclined towards single-level houses. Therefore, pricing your two-story home twice as much as a single-level house may intimidate house buyers! Always know the middle point between the important factors should you want to sell your house quickly.
The most important thing to remember is to find the price that would stay attractive for the buyers without sacrificing too much of your earnings. Aside from this, you also need to include in the equation the current economic conditions, your property value, the upgrades you have done, and the deficiencies your house has.
Whether you need a professional’s perspective for your real estate transaction or you simply need a property listing platform in Owensboro, KY, contact us at The Blake Hayden Group. Our agents are filled with comprehensive knowledge and will assist you in any real-estate-related concern you have. Give us a call at (270) 244-6162 to get started!