You may think your home is worth more after you made significant repairs and improvements. This is why setting a high list price sounds like a great plan for a successful sale. After all, you can bring down the price later on or when the situation calls for it, right?
But this type of strategy involves a lot of risks. For starters, setting your list price too high may cause you to lose a ton of money on potential buyers who cannot afford such a property. And since most buyers are well educated in today's market, they might steer clear of your home knowing that it’s overvalued. Once a home has sat on the market for too long, depending on average days on the local market, buyers and agents will start to assume there are problems with the house. And these assumptions will continue even after the price has been reduced.
With the help of your agent, you can set a reasonable list price by looking at the value and selling price of comparable homes in and around your area, called a comparative market analysis. Underpricing your home has more potential to attract multiple queries and offers, which will make room for you to increase the asking price. As a result, you might end up making a greater profit than you initially anticipated.