Base price on the amount you paid for: The world is not a fair place. Therefore, if it’s a turbulent market and the home prices have dropped more than what you paid for your home you need to deal with it. Do not expect someone to purchase your home at your set price just because you want to balance out the loss or because you own certain sum on your mortgage. The buyer has options and they will take their business elsewhere.
Leaving too much negotiation room: Typically sellers will price extremely high as a way to leave a lot of negotiation room. This tactic may have worked in the past, but today buyers will just skip your home altogether as the price will simply care them off. Moreover, most buyers search online based on price, so if you place a high enough price it is likely that your home will not even appear on their computer screens. A better way to go is to price the home at market value or just below this way you will spark interest and the buyers themselves will bid up.
Getting emotionally involved: All homeowners will think their home is worth more than it actually is. It is important to stand back and examine the place from a third perspective.
Basing your home price on the neighbour’s price: If the neighbouring home is also up for sale don’t blindly just come up with your home’s price based on the neighbour’s listing. There is a high chance that your neighbour is not well informed with the market, they may be emotionally tied to their home and truly doesn’t want to move. You will fare much better by looking at prices on recently closed sales.
Expecting to get reimbursed for renovations: Statistically speaking on average most remodeling projects will have a 62% return on investment. Prior to selling your home is it a good idea to focus on the repairs less susceptible to personal preference and those that will give you the highest ROI.
Failing to examine competition: Be realistic, look at the homes in your neighbourhood and look for the positives and negatives. A home may be quite similar to yours but that fireplace will give it an extra oomph, or that extra half bathroom!
Quitting too quickly: If you notice that the neighbouring homes have had a relatively short DOM compared to yours, then it is a sign your home is priced too high. Do not make small price cuts – this will not attract more potential buyers and do not quit altogether, instead decrease the home’s listing price by at least $10,000 this way people will know you are serious about selling your home.