Avoiding Common Home Pricing Mistakes
Selling a home can be a complex process with many moving parts.
Determining the accurate price for your property is a crucial element that can significantly impact how quickly your house sells and the profits you make.
In this blog by Measured Home Services, we outline common mistakes sellers make when pricing their homes and provide expert advice to help you navigate through your next real estate transaction seamlessly.
Missteps in Determining Home Size
One common mistake sellers frequently make is advertising their property without knowing its accurate square footage.
Many sellers tend to rely on county records for square footage, often overlooking the fact that these records can be inaccurate and serve a different purpose than a real estate appraisal.
Square footage recorded on the county sites may include areas like the garage or unfinished attic space which do not meet the definition of living space for appraisal purposes. Additionally, the county will typically round off the measurements to the nearest foot, making the total square footage reported on the county record less accurate when compared to the measurements obtained by an appraiser.
This discrepancy can lead to incorrect assumptions about the property's size and subsequently impact the property's value. An overestimation of your property's size could potentially cost you thousands when it's time for a resale. Conversely, an underestimation of your property’s size could cause you to sell your house below market value.
At Measured Home Services, our property appraisal experts accurately measure your home to provide you with a comprehensive report before you decide to buy or sell.
This helps ensure that when your house is listed on the market and compared to similar properties, there are no discrepancies or surprises in square footage.
Mispricing Based on Non-comparable Properties
Another common mistake that can result in a low home appraisal is determining the list price of the house based on comparison with other homes that aren't truly comparable.
For instance, using the price per square foot of a significantly smaller house in the neighborhood to determine the list price of a larger home can lead to overpricing.
It's important to remember that smaller homes generally command a higher price per square foot than larger homes.
Using this flawed approach to set your list price could lead to disappointment and prolong the time your property stays on the market.
Other Common Pricing Errors
Aside from the aforementioned, several other mistakes sellers make while pricing their homes include:
1. Pricing Too High
Overpricing is a frequent error sellers commit. Homes with a high price tag may remain unsold for extended periods, and when an offer does come, it's often significantly lower than the asking price. As the number of days on market increase, buyers may begin to perceive the property as less desirable.
2. Pricing Too Low
Conversely, underpricing can also be detrimental. It may lead to quick sales, but can cost you potential profits. It might attract bargain seekers who may not be ready to pay the full asking price.
3. Ignoring Market Conditions
When setting your home's price, it's crucial to consider current real estate market conditions. In a hot market, a higher price might be justified, but in a slow market, a lower price can attract buyers. It is important to remember that homes sold in winter months may have more days on market when compared to similar homes sold throughout the year.
4. Failing to Research
Before pricing your home, thorough research and comparison with similar homes in your area is vital. This provides an idea of your property's value and aids in competitive pricing, avoiding an extended time on the market.
5. Overlooking Professional Advice
When uncertain about pricing your home, consulting a real estate appraiser is advisable. An appraiser can provide the accurate square footage of your home, assess your property's value and help determine a competitive list price.
By avoiding these common mistakes, you can increase the likelihood of selling your property promptly at an optimal price.
At Measured Home Services, our team of Tulsa Real Estate Appraisal experts is committed to helping you avoid these costly mistakes.
We provide professional appraisal services, ensuring an accurate, unbiased opinion on your property's value.
