Pricing your property correctly is crucial. You want to sell in a timely manner at the highest price possible, but current market conditions determine the value of your home. Realistic pricing that is close to the true value of your home will help achieve a maximum sale price in a reasonable amount of time, whereas overpricing may cost you time and money. Generally, the price should not exceed the value by more than 5% of potential buyers may not even make offers.
The following are a few things to keep in mind:
- Realistic pricing achieves maximum price in a reasonable time
- The market determines the price, not your ideal profit
- Improvement costs are almost always more than added value
- Houses that sit on the market for a long time tend to not be shown
However, if you overprice your home:
- It makes other homes more attractive and can help sell the competition instead.
- Your home will be shown to fewer prospective buyers
- You may lose buyers who would be willing to negotiate