November 19, 2015 by Jeff Lowen
Every homeowner wants to make sure they maximize net dollars when selling their home. However, can you guarantee that you receive maximum value for your house? Let me peek into my crystal ball… Won’t find much there; will have to rely on my experience and track record! Here are two keys to insuring you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counter-intuitive, so 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 actually, this just dramatically lessens the demand for your house. (see chart)
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so demand for the home is maximized. In that way, 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. The rule of thumb is to have buyers fight over your house, without your participation.
In a recent article on realtor.com, they 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
Again… Counter-intuitive? Perhaps. Yet, a seller may think they would net more money if they didn’t have to pay a real estate commission. Yet, studies have shown that typically homes sell for more money when handled by a real estate professional. Better yet, hire us! 😉 At least have some criteria by with you hire them. A career agent, not a part-timer is a start. I have 12 solid questions I’d ask them and, “Will you do an open house and make pretty brochures?” are not on the list! Ask me about them!
Recent research posted by the Economists’ Outlook Blog revealed:
“The median selling price for all FSBO homes was $210,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $151,900. However, homes that were sold with the assistance of an agent had a median selling price of $249,000 – nearly $40,000 more for the typical home sale.”
The moral of the story?
Price it at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.