While navigating the Californian real estate market, you can either make or break your property sale based on the pricing decisions you make. One of the initial inquiries we encounter at Berkshire Hathaway HomeServices revolves around accurately pricing a property, a task not easy for those unfamiliar with real estate. To ensure your property is priced appropriately, reaching out to us at Berkshire Hathaway HomeServices is your safest bet. In the meantime, consider these common pricing pitfalls sellers frequently encounter.
Relying on Unsold Properties for Pricing
It’s common to scout your neighborhood for similar properties and align your price tag with them. However, this approach can lead to a significant error if these properties haven’t yet been sold. A property can be listed at any price, but it doesn’t necessarily mean it’s sale-ready. Focusing on properties that have sold successfully gives you a real perspective on what buyers are willing to pay, not the price the sellers wish to command.
Focusing Solely on Past Sales Data
Though you should consider properties that have successfully sold, they shouldn’t be your only guide. Real estate markets, especially in California, are volatile and fast-moving. Pricing your high-end home based on the selling price of similar homes two years ago isn’t advisable.
Overestimating the Value of Improvements
Investing a considerable amount in renovating your property doesn’t guarantee an equivalent increase in its sale value. In fact, some renovations may end up devaluing your property.
Expecting Full Recovery of Maintenance Costs
Suppose you’ve spent $35,000 on a new roof and $30,000 on a sewer line replacement. Can you expect to recover these costs when selling your property? Occasionally, you might, but generally, maintenance costs don’t guarantee a return on investment.
Relying on Generic Internet Tools for Pricing
Several real estate websites offer home valuation estimates. However, these generic tools lack the knowledge about your specific property and the numerous factors affecting its valuation.
Unwillingness to Adjust Pricing
If you list your home at a certain price and then witness multiple similar listings in your neighborhood, anticipate either a price drop on your end or a longer selling period until the availability of similar properties decreases.
The best course of action is to partner with a real estate professional who can guide you through an accurate home pricing process. Reach out to Berkshire Hathaway HomeServices at (310) 373-0021 today to learn how we can assist you.