One of the biggest struggles for Nashville home sellers is establishing the best sales price for their house. Most sellers have a price in mind, and plenty of reasons why their home should sell at that amount. Oftentimes, it can be tough to stay objective — when in reality, an overpriced home can cause potential homebuyers to overlook the home completely.
Never fear, a home that is priced right will sell!
Here are 3 myths about home pricing and the truth behind them.
Home pricing myth #1: Start really high and let the buyer negotiate
There are multiple reasons for avoiding a high price with the expectation that buyers will negotiate. First, initially pricing the home too high will likely turn off the legitimate buyers that would have been interested. If homebuyers are searching in your neighborhood already, then they know what the other homes have sold for and most homebuyers aren’t interested in paying more than that amount.
Second, by doing this you lose time. Nashville homes for sale get their best prices within the first 30 days on the market. Setting the price high in the hopes of negotiating means risking that window of opportunity.
Home pricing myth #2: I can always reduce my price later
Reducing the price later also compromises the initial activity the home could receive when it first hits the market. Generally, the longer a house sits on the market, the lower the sales price in the end. Plus, once you’ve lowered the price a potential buyer may still offer far lower. Reducing the price of a home multiple times indicates that you NEED to sell your home, which can cause homebuyers to think they can lowball the price.
Home pricing myth #3: Add your upgrades to the home price
This happens frequently. Homebuyers spend a great deal of their own time and money to invest into their home. When it comes time to sell, they want to add all of the costs of upgrades into the home price. Unfortunately, that’s not how it works.
Sure, some home improvements can increase value — for example adding square footage or a garage. However, many renovations, such as a new roof, don’t actually affect the home price.
The home’s sale price will largely be determined by what other homes in the area are selling for at the time when yours is listed. Since this fluctuates with the real estate market, we suggest researching this prior to listing as to set realistic expectations.
Establishing the right sales price is tough, and working with an experienced Nashville REALTOR can greatly reduce the stress and disappointment home sellers feel when they go it alone. The Nashville real estate market is constantly changing, so it’s important to work with REALTORS that are familiar with its ups and downs!
Are you considering putting your Nashville home on the market and want to talk about a listing price? Call DeSelms Real Estate today at 615.550.5565 and we can discuss the current Nashville real estate conditions!