February 29, 2016 by Jeff Lowen
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 ensuring you get the highest price possible.
1. Price it SMARTLY…
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 your 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 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.
Realtor.com, gives 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. Get Help…
This too may seem counter intuitive. The seller may think they would net more money if they didn’t have to pay an agent 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. If you were thinking of possibly attempting to sell your home yourself, read this first!
Research posted by the Economists’ Outlook Blog revealed that:
“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.”
3. To get even better results, don’t use just any real estate agent. Speak with and use a Certified Home Selling Advisor…
Traditional methods, typical CMA (comparitive market analyses) and fancy brochures don’t help. They actually hurt. CLICK HERE to see what that difference is.
The moral of the story…
Price your house smartly, which may mean at or slightly below the current market value and definitely hire a professional. If you want to maximize the benefits of your home on the market for the absolute best it can offer, then speak with a Certified Home Selling Advisor.
That not only will guarantee you maximize the money in your pocket when it’s all over, when someone asks you, “How do you know you got the best price for your home?” You’ll have an answer!