Why Is Pricing Your Home So Important? You only get one "first impression."
The first two to three weeks are the most critical period in selling your home. It is the time when you want to make the best first impression. That means not only putting out the quality photos of your home in the best shape possible, but having it priced accurately enough to draw the most potential buyers.
There are several factors to consider:
1) What are the comparables (closed sales) in the last six months with no more than a mile radius of your home (preferably 1/2 mile)?
Homes should be similar in size, square footage, lot size, number of bedrooms, bathrooms, garage, waterfront, etc.
2) What homes are currrently on the market and what homes are pending sales?
Your home needs to be priced competitvely with those surrounding it. Pending sales can change the comps landscape within any given month. Be aware of those getting ready to close.
3) What upgrades make your home more valuable?
There are some home features that add value to your home. A new roof, an upgraded kitchen or bathroom are a few popular ones that add value. Remeber that personal choices, such as, wallpapered walls, unusal colored countertops, or other very specific choices can diminish value.
4) Most offers will be financed, which means they have to meet appraisal standards. If a seller gets a great offer, but the home's price and offer are so far beyond what the home can appraise for, the seller has just lost weeks or even a month of time. Be realistic, ask each agent you interview how often they have difficulty with appraisals. Many agents can get homes under contract, but you want one that get you to the finiah line and get the deal closed.
So what happens if the home is overpriced? You may not attract a high number of buyers, therfore limiting your chances at a high or full priced offer. Once you lose those first few weeks, your home will not be seen as fresh inventory. The last thing a seller wants is for their home to be considered "stale Inventory." It would be highly unlikey after the first few weks to get a full priced offer.
I often recommend to have a Realtor provide a home analysis prior to large scale home renovations. This can help protect and guide the homeowner to not overspend and overimprove. Good agents are avaialble well beyond just buying and selling.