This is said over and over again in the business world, and homeowners often try and ignore this very important part of pricing their home for the market. When sitting down with a potential client and discussing the pricing of their home, most sellers focus solely on the price that their ‘neighbor got’ for their home. They compare, in their mind, the features and upgrades that they have and their neighbor didn’t have, and then come to a number that they feel their home is worth.
It is ever so much more important to step away from your personal feelings when selling your home (this is afterall a business transaction), and consider what else is for sale. The competition in this case, is the other homes that are listed in and around your price range within your same town, county, state, etc.
If your home has some unique characteristics, this may add or take away value in the mind of the buyer. Even if you really love the custom wallpaper that you paid a small fortune to install, the buyers may just want to rip that out as soon as they move in. Everyone’s taste is different! So the value that you may think you have added to your home, may just be seen as an expense that the buyers must undertake as soon as they purchase.
If your home is in pristine, move in condition, this may help you find a buyer faster, but will not always add to what they are willing to pay. When considering where to price your home you need to keep in mind that every buyer that even considers your home (whether they come through your house or not) will look at every other home on the market. They want to make sure that they are getting the most for their money. Can you say that you are offering that? Does your home offer more to the buyer then any other home that they can look at?
So, price your home right, and do it the first time. The longer a home languishes on the market, the less likely you will get your asking price. And as a matter of fact, statistics show that the homes that are priced right the first time, sell faster, for more money (much closer to the asking price), and the homeowners have far less hassle getting to the closing table.