If you’ve been considering selling or refinancing your home, you may already have a price in mind. But beware. Your price might not be based on sound data. Here are a few cautions to consider before you get too excited about your home’s value.
1. When you get a high valuation from agents, ask them to justify the price. The last thing you want is to list too high, because your property will languish and lose appeal, causing it to sell for less than market value.
2. Comparable will tell you what other houses are selling for. Don’t argue with the comparable, but work with a real estate agent who understands the trends in your area. If they know prices are rising, they might press higher. But if they know prices are stable, they’ll suggest pricing your house competitively
3. Price your home based on sold’s, not actives. Homes that are on the market now are not an indication of what they will sell for. Sellers often want to price their homes higher than a neighbor’s house, even though that house has been sitting unsold for months.
Pricing right, or even lower than market value (thereby creating interest and possibly a bidding war), is the easiest way to get your home sold. Your fear of leaving a few thousand dollars on the table upfront should pale in comparison to what could happen if you can’t sell at your “preferred” price.