3 Mistakes When Pricing a Home

I get to meet with sellers every day and talk to them about getting their house ready to go on the market. Talking about pricing is a tricky conversation because we want to ensure that we aren’t pricing the house too low. We don't want to leave money on the table, but we also don't want to price the house too high. That could ultimately lead to the house sitting on the market longer and ultimately selling for less money. Here are three common pricing mistakes that we see sellers make when listing:

1. Not taking the condition and upgrades into account. The condition of the home and the upgrades play a massive role in the sales price. Compare the flooring, roof, kitchen, bathroom, etc.

2. Pricing per square foot. Many websites will show the price per square foot but that is a very misleading and inaccurate number if you want to look at how things are selling. I've had conversations with at least a dozen local agents and appraisers about this, and they also don't think it's an accurate way to look at pricing.  There are too many variables. When you're looking at pricing, disregard pricing per square foot.

3. Selecting your agent based on the price that they tell you they can get. This is something I hear about all the time. No matter the price, make sure you're sitting down with the agent and looking at all the data with them. Have them show you comparable houses in your neighborhood and explain the current market conditions. A great agent will come with the data and will be very knowledgeable about your particular area.