One of the most challenging things for homeowners to do is settle on a price that is a good fit for the current market vs. one that is inflated based on personal bias.
There are a lot of good tools to use when pricing your home but you should avoid these common thoughts when justifying the price of your home.
- What you Paid for your home.
- What your Neighbor sold their home for.
- What You’d Like to Make in Profit
- How much you’ve spent on the home
There is a phrase in Real Estate that “you make your money when you buy,” meaning that you typically aren’t going to make over market value when you sell so the only way to profit is to buy it undervalue.
The price you paid for your home will be reflective of the supply and demand, the condition, and other market factors at that moment in time.
Buyers will look at similar home prices to gauge the price of yours, unfortunately, with little concern for what you paid for it or how it affects your finances.
When pricing your home, remember that buyers want a good deal for themselves. When marketing your home for sale, your goal should be to showcase your home’s worth and why the price you are asking for is fair.