Common myths regarding how to price your home to sell


Sold Home For Sale Sign in front of Beautiful New Home.You need to sell your home in Bellingham, WA and you are wondering how to price your home. You may have gotten some information off of the internet or from friends that have sold a home or two before. Kudos for doing research on how to get your home sold, but I bet sometime during this process some myths arisen. I would like to take the time to clear up a few of those myths because there is so much information out there, and wrong information can hinder the home selling process in Bellingham, WA.

Myth #1 – I want to Price My Home Higher so that I have Some Negotiation Wiggle Room. You may know what your home is worth because you have discussed the price range your home is likely to sell with your local Bellingham, WA Realtor®, but you believe that if you price it at what the realtor recommends (selling price) then you will not have any room to negotiate.

This is a common misconception, and I can understand why someone would think that. However, if you price your home with the idea that you will negotiate downward, you are setting yourself up for failure, and there are a couple things that are very likely to happen.
First, those buyers that would normally see your home and buy it will not even know your Bellingham, WA home is on the market. Why would this be? Because it’s out of their price range. Most buyers shop within a price bracket. For example a common search might be a 3 bedroom, 2 bathroom home between 200-300K. However, if you have your home priced at $315,000 then you have excluded your listing from all of those potential buyers looking between 200-300K. If for some reason, they do see your home, they may not make an offer at all because buyers will not want to bother making an offer that they believe the seller will think is too low. You are also automatically marketing to a higher priced market and may be competing for properties that are in a completely different price bracket. So you may miss out on the opportunity to get any showings and any offers altogether.

Myth #2 – Lets Price it High Just to Test the Market. I want to get the most for my home that I can. If I don’t get any showings, then I will just wait it out.
Let me go ahead and just tell you…The Real Estate market in your area has already been tested. Those that passed the test are your neighborhood comparable home sales that actually sold in the past 3 to 6 months. This is how we come up with a price to sell your home. Pricing high just to see only wastes time and time on the market causes the listing to become stale and less desirable. The shorter the time your home is on the market the more desirable. I tell my clients if you need to sell your Bellingham, WA home, then lets price it accordingly. See myth #1 for what happens when you price too high.

Myth #3 – I have put a bunch of upgrades in my home so it is worth more than the property down the street. I put in wood floors, new carpet, and new appliances so I should get more for my house than the nearest comparable home sale.
This may or may not be true. Upgrades to your home are a good thing, and can increase value. However, you would be surprised on what appraisers give credit for on upgrades. Some upgrades do add value to your home, but it probably won’t be tens of thousands of dollars over the nearest comparable home. Wood floors, granite counters, and stainless appliances are really more the standard these days. Please do not expect to recover what you were charged for those upgrades at the initial time of purchase when it comes to resale. When I do a comparable market analysis on your home and neighborhood, I look at the nearest and most recent sale and come with a price range your home will more than likely sell for. There will be a lowest and a highest price and when you have lots of upgrades we generally go with the highest price that is within range of other properties with similar features.

Myth #4 – You Realtors® just want to Price my Home Low so you can Get Paid and Get all the Kudos for Selling Quick.
Pricing a home low doesn’t do anyone any good. Just like pricing your home too high, pricing too low can have negative consequences. Properties that are priced below market value can draw in a flurry of investor offers that are more than likely to be lower than your low offer. I will say that with a low offer there is a good chance in a sellers’ market that it will generate multiple offers. If this is a strategy you are looking to follow then consult with your local Bellingham Real Estate Agent on how to do this successfully in the Bellingham, WA market. As a homeowner myself I am a true advocate of keeping property values increasing…not decreasing.

Call me today if you are looking for a Bellingham, WA Real Estate Agent. I will do a comparable market analysis and come up with a reasonable price range where we can sell your home. From there we can discuss what you need to net from the sale and price your house accordingly. No smoke and no mirrors. Pricing just right is what I am here to help you accomplish.

To find out what your home is worth please visit GreatNWHomes.com/sell or call 360-223-9050 today.

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