HOW TO DETERMINE IF YOUR HOME IS OVER PRICED

Everyone thinks their home is the best on the market.  The reality of it is, your home (like all things in economics) is only worth what someone will pay for it.  If your home is over-priced, you are likely going to be listing it to sit, and not sell.

  1. You have determined your list price based on the amount of money you need to make your move, cover real estate costs, maybe pay off some credit card debt or a loan. At the end of the day, the market is the market, and your listing formula should be based on what similar homes have recently sold for in your neighbourhood.

 

  1. You are basing your asking price on what you have spent in upgrades. It is important to know before undertaking any home renovation projects (whether you have done them for you to enjoy, or are doing them to get ready to sell), you will likely not get 100% return on your upgrades.  Where is it said that you can buy an item, install it in your home, use it for a few months or a few years then ask a new buyer to pay you top dollar for it?

 

  1. There has been no interest. In the current Fraser Valley real estate market, you should be getting at least a showing every 2 days.  If you are not, you need a price check.

 

  1. Your home has been on the market a very long time. If months have gone by with little or no interest, you need to re-evaluate your price.

 

  1. You are basing your price on what other active listings are being listed for, not what they have sold Keep in mind, your home is only worth what someone is willing to pay for it.  This goes for your neighbours home, and their neighbours home, and so on.  If you are listing to actually sell your home, you need to list it for a price that the market is willing to pay for it.

 

If you are suffering from one or more of these signs, talk to your agent.  Ask them for feedback and to do a detailed report of area sales…Then, make a price adjustment.

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