So you've decided to sell your house – now comes the tricky part. Zillow has one opinion. Your neighbor down the street, another. Here are some common home pricing myths that need to be debunked.
1. The housing market in Portland has appreciated 6% in the last year; therefore, my house is worth 6% more
"General market appreciation is not the same as neighborhood appreciation. Location, condition of a specific property, and neighborhood trends are all important factors for rate of depreciation and appreciation," said Richard Caplan, PMAR President, Windermere Stellar.
Caplan also notes the market is very neighborhood-specific: "Are there several homes listed (that is, offered for sale) but not yet pending? Are comparable homes in similar, better or worse condition, and or updated compared to yours?"
2. I need to price my house high in order to leave room for negotiation
In fact, overpricing limits your pool of potential buyers. Those buyers who can afford to pay only what your home is truly worth aren't going to bother looking at your home – or may never even see it is for sale – because they assume they can't afford it.
3. I need to make $X off this transaction, so therefore, I will price my house as $Y
While you as the seller will ultimately agree on the price of your home, it isn't quite as simple as basing it on the amount of money you'd like to make. As mentioned above, market conditions, the home itself, and more, will all be factors you need to consider. "Having a Realtor do a complete market analysis for your home is one of the best ways to create an opinion of value. A Realtor will tour your home with you and then prepare an analysis with comparable properties," advised Caplan.
4. All right, already, I listened to my Realtor and I priced my home correctly. Bring on the bidding war!
While it's true that many homes in close-in Portland that are priced well are seeing multiple offers, it's not always the case – and it doesn't necessarily mean you are doing something incorrectly. Just because you price it right doesn't mean you are going to get multiple offers that will have you selling for more than you list. Perhaps your home needs repairs or doesn't have curb appeal. Perhaps the neighborhood isn't as desirable. Here's the thing to remember when pricing your home – you've agreed on a price at which you'd be happy to sell. If you only get one offer from a serious, qualified buyer who will see the transaction through, that's the ultimate goal.