Home pricingPosted: October 4, 2017
You won’t always make money on the sale of a home.
Home sellers shouldn’t always assume they’ll walk away with a profit. While Nome has a fairly stable market, Sellers’ return greatly depends on the condition of the home at the time of sale and what and how much they paid for the home when they purchased it, and what recent sales comparables the home is going to be compared to on appraisal.
Pricing your home high to ‘see what you can get’ is a bad idea.
Sellers may be tempted to set a higher price to see if they can actually get it. Overpricing a home from its initial listing isn’t easily fixed by lowering the price. Buyers may presume something is wrong with the home if they see it linger on the market or have multiple price reductions.
Setting a reasonable price point can make you more money in the long run.
Pricing a home on the low end can actually pay off in more that a faster sale. Low-priced homes tend to prompt greater interest among buyers. That could result in a bidding war, which could increase the home’s price way past the listing price. Plus the presence of multiple offers can help validate the sales price in the event of a low appraisal.
Rennovations do not equal return.
Just because you completed a renovation of your kitchen or outdoor deck does not mean you can recoup every dime of that investment at resale. Some renovations may help you to increase your home’s value, such a deck. Sellers, however, rarely will recoup the entire cost from a renovation. Sellers, on average, see a 64 percent return on every dollar they spend on home improvements, according to realtor.com®. And if you had to replace a broken window, or repair plumbing, that typically doesn’t reflect a higher sales price.