July 6, 2016 by Jeff Lowen
- Tell the world your home’s for sale.
- Sell for big bucks.
Simple, huh? 😉
Actually, every homeowner wants to make sure they get the best price 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 a LITTLE LOW
Yes, I know… 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).
If they don’t see it… They can’t buy it!
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 underpriced, especially in areas with low inventory.”
2. Use a well trained, skilled Real Estate Professional
To some, 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.
I would agree… With an average agent, that has difficulty seeing issues before they occur, unsure how to make up ground (and cash) in negotiations, and doesn’t spend a lot of time keeping abreast of the fast moving, letigeous real estate market.
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.”
The moral of the story…
For the most activity and exposure, price your house at or slightly below the current market value and hire a professional. One that’s trained in negotiation strategies and maximizing your dollar before, during and after you have a ratified (All parties agree on the price and terms) contract!That will guarantee you maximize the price you get for your house.
Please choose one:
I would like the services of a…
- A below average agent
- A median agent
- A well skilled professional
There IS a difference. How do you tell?