Folklore About Listing Prices
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Tales get told and re-told and somehow develop into fact. Some tales that are told and passed along are devoid of fact. The following real estate folklores concerning listing prices in real estate, will not generate a fast or full price offer.
Price high to make more money. The number one mistake in pricing. Market value is the guide in any real estate climate. It is what it is. If the market analysis says a certain number, it doesn’t matter if you have more invested in the property or think it is worth more. The market controls the value of your property at any given time in any given market. It is worth what someone will pay for it.
Price high and lower later if it doesn’t generate an offer. Not only will you miss potential interest in the first most important days of a listing, but if your property lingers and you lower the price to market value, it has already been branded a dud. Buyers will be skeptical.
Purchase price plus renovations equals market value. Not even close. Remodeling magazine predictions for the Mountain region, which includes Idaho, the biggest return on investment is a front door at 91% or a garage door replacement at 96%. Expect that a major kitchen remodel will return only 59% of the total cost.
Be mindful of correct market pricing, Folklore About Listing Prices is strong in our culture. Overpricing can have a devastating effect on marketability and offers. Pricing correctly the first time almost always nets the biggest potential for timely acceptable offers.