Every homeowner wants to get the best price when selling their home. But how do you ensure that you receive maximum value for your house? Here are two keys that may help you get the highest sales price.
1. PRICE IT A LITTLE LOW
This may seem counter-productive. However, let’s look at this notion for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In most instances that can dramatically lessens the demand for your house (see chart below).
Instead of trying to ‘win’ negotiations with one buyer, it is typically better to price it so that demand for the home is increased. In that way, the seller will not be in a battle with 1 buyer over the price, but instead could have multiple buyers looking to “win” 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 REAL ESTATE PROFESSIONAL
To some Seller’s, this seems to be less than desirable. The seller may think they would net more money if they didn’t have to pay a real estate commission. Real Estate sales can be tricky and most Sellers are not familiar with Real Estate laws. Studies have shown that homes typically sell for more money when handled by a real estate professional.
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.”
Market conditions are always changing and there is no single formula for Real Estate sales success. Price your house at or slightly below the current market value and hire a professional. This will ensure that you have all of the tools in place to help you maximize the price you get for your home.