Pricing Myths That Could Sink Your Home's Sale

When you make the decision to sell your home, you are entering a competition with comparable homes in the area. Pricing the home is a major part of attracting potential buyers. Unfortunately, too many homeowners rely on misinformation they have received from others to determine the listing prices of their home. To avoid a scenario in which your home's listing price is not attracting buyers, it is important to know the truth about these pricing myths:

Price the Home High and Negotiate to a Lower Number

Amateurs to home negotiations think that selecting a listing price that is outrageous and haggling down to a lower number is a tactic that works. The reality is, if you price your home too high, you likely will not attract enough interested parties who are willing to start negotiations.

Most home buyers start their searches online and through paper listings. If your home is out of their budget, they will likely cross it off the list. To them, even viewing the homes for sale online could be considered a waste of time.

It is imperative that you take the time to research the comparable properties in your area. You need to determine the fair market value of your home. If you price your home just right, you could potentially spark a bidding war that will net the profit you want.

Raise the Price If You Receive Quick Offers After Listing

It can be exciting to receive multiple offers shortly after placing your home on the market. For some homeowners, the offers are an indication that the home might be priced too low. However, there is a good chance that this is not true. If you pass on a good offer that you received after listing, you could be missing out on the best offer you will get.

There are several factors that could lead to receiving quick offers. For instance, if you live in an area with a limited number of homes, you could be inundated with offers at or slightly above your listing price.

If you are worried that you could miss out on an even better offer, talk to your real estate agent and attorney. He or she could ensure that the offer you receive has a contingency that allows you to continue to field offers for a period. If you receive a better offer during that period, you can back out of the original agreement and accept the other without fear of facing backlash.