Often home sellers fall prey to myths that don't always match the reality of the housing market. Here are a few that Realtor.com highlighted about home pricing.
You don't always make money on the sale of a home: Sellers' profits greatly depend on their location and how much they paid for the home when they purchased it. The National Association of Realtors reports that 23 markets have seen the cost of homes decrease in recent months and we shouldn't forget the huge market decline that took place in 2008.
Sellers are often tempted to set an initial higher price in order to see if someone is willing to pay their price. This can back fire and you end up sacrificing valuable time for the gamble that someone is going to bite. As listings age, interest wanes and a property can often be stigmatized...What's wrong with the home? Why isn't it selling? Why did they reduce the price?
A common belief is that setting a low price initially means you won't make as much money. Low priced homes generate a lot of interest among buyers and can often result in a bidding war which then increases the home's price past the original list price.
Sellers often try and price their home based on the amount they put in to the home. Remodels do help sell a home and can increase value but don't expect to recoup the entire cost of repairs. and renovations. You see on average about 64% return on every dollar you spend on home improvements according to Realtor.com.
Over improvements can also be a pit fall so be careful and think about your long term goals!
Source: 7 pricing Myths to Stop Believing If You Ever Hope to Sell Your House. September 7, 2017. Realtor.com