5 Real Estate Pricing Myths That Every Seller Should Know

Selling your property can be a challenge, particularly when it comes to setting your expectations related to the pricing. Price is often the single most important factor that determines how fast you sell and also whether you are able to close the deal at all. So the best bet is to set the price right and there are certain misconceptions that need to be cleared in this context. Let us help you with them.

Overpricing isn’t that big deal

Of course, starting with an unrealistic asking price is not a great idea because such properties tend to get fewer offers and sometimes even longer on the market. However, if you have made this mistake while listing the home for the first time, you can still rectify it by changing the price. But it is still recommended to quote an optimal price in the first instance itself because reducing it later on may get across a bad impression on the buyers.

You will get the same price as your neighbor has got

Another misconception that sellers may have is that they can command the same price as their neighbor at a specific point in time. Just as market trends have influence on real estate pricing, so does the condition of your property. If your neighbor has sold his home for $ X, you cannot expect to sell at the same price because the two houses will probably not be the same. They will differ from the perspective of their condition, even if they are architecturally the same and have been constructed at the same time.

Selling price is always greater than the purchase price

Real estate prices vary from time to time, depending on the external factors like market trends, development in the neighborhood, demand, etc. For this reason, it would be wrong to expect that the price you will fetch while selling the property will surely be more than the purchase price. It is actually determined by how the property is positioned price-wise in the existing market and prevailing competition.

High demand means that you can be aggressive with pricing

If you think that high market demand gives you the liberty to go aggressive with pricing, this is one misconception that needs to be debunked. You still need to see the bigger picture because the demand in your neighborhood is not the only parameter that determines the price of the property. So be careful to take the other factors like the age and condition of the house while setting up the price expectations.

Renovation costs can be added to the prices

Getting the place renovated is a good idea to add to its value and make it an attractive buy for the potential customers. But adding the renovation cost to the home value for calculating your home’s price tag is the wrong approach. Pricing should be rather done with a holistic approach, considering the entire parameters as a whole.

Being realistic while quoting the price of your home makes all the difference to selling your house fast and commanding a good value. You can check out sites like https://www.homesinmeridian.com/ to get a complete overview of real estate options in your area, whether you are a buyer or a seller. If you are out in the property market, seeking expert assistance is always the best option to get good deals as you buy or sell.

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