Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counter-intuitive, however let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for their house. (See chart below)
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand
for the home is maximized. In doing this, the seller will not be fighting with a buyer over the price, but instead will have multiple buyers fighting with each other over the house.
Realtor.com recently gave this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly under-priced, especially in areas with low inventory.”
2. Use a real estate professional
This too may seem counter-intuitive. The seller may think they would net more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional. Research posted by the National Association of Realtors revealed that:
“The median selling price for all FSBO (For Sale By Owner) homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sank to a median selling price of $163,000. In comparison, homes that were sold with the assistance of a real estate agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale!”
Price your house at or slightly below the current market value and hire a professional in order to guarantee that you maximize the price you get for your house.
With over 3 decades in the real estate industry, we have both the knowledge and experience to guide you through every step of the process, whether buying or selling a home. We are happy to answer any questions you might have regarding real estate, home-ownership, our current market or our local community. Please give us a call. We look forward to talking with you!