Setting the right price when selling your home is the key for ensuring a fast, successful sale. The amount of time a house takes to sell depends largely on the local real estate market. However, setting the right price can help your home sell faster.

More importantly, “pricing your home too high will discourage interested parties from making an offer, and your property could sit for months,” writes Kate Ashford for Forbes.com.

Avoid these 5 common mistakes homeowners make when setting your sale price and you’ll be on the right path from FOR SALE to SOLD.

for-sale-sign

Don’t Use Your Neighbor’s Price

So your neighbor is selling his property, and it’s about the same size as yours. You can price it like he has, right?

Wrong! He could have picked an arbitrary number, not based on research or facts. That would mean disaster for both you and your neighbor.

The trick is to find out the final sale price of a home similar to yours that has recently sold. You can base yourself on that number. ComFree Ontario, a real estate network in Canada, writes on their blog that “finding comps, or comparable sales, in your neighbourhood is your best shot at finding the right selling price for a home.”

Don’t Add Renovations to the Price Tag

You may have spent $20,000 upgrading your bathrooms and kitchen. That doesn’t, however, add $20,000 to the value of your property.

Home renovations are a matter of personal taste, and potential buyers may not see the value in an upgrade you chose. Do not expect a 100% return on your investment.

Don’t Price According to Your Financial Needs

Sellers fall into this trap when they have already bought their new home. The feel they need to sell for a certain profit in order to pay for the new house.

Here’s the truth: That’s not the buyer’s problem. If you’ve priced your home for sale too high, they simply won’t make offers. Then you’ll be in a worse position!

Don’t Look to a Completely Different House for a Price

If you’re pricing your home like one with a two-car garage, pool and 4 bedrooms but yours doesn’t have a garage and only has 3 bedrooms, you’re bound for disappointment.

Look at your municipal evaluation, or hire an accredited appraiser to give you a recommendation.

Don’t Experiment With Your Price

The number one mistake a homeowner can make is to set their price a little high thinking, “Let’s give this price a try and see how it goes.”

Buyers who think your home is overpriced will write your property off and won’t make an offer. The longer your home sits on the market and the more price reductions you make, the worse it looks. Buyers will think there is something wrong with the house.

Ultimately, “your house is only worth what the market is willing to pay you,” says certified financial planner Ellen Derrick of LearnVest Planning Services, who has bought and sold at least eight homes, including investment properties.

Set the right price for your property from the start, and you’ll be sure to get reasonable offers from potential buyers.