How to Get the Most Money When Selling Your Home
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
This may seem counterintuitive. 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 reality, 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. By doing this, the seller will not be fighting with a buyer over the price, but will instead 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 Real Estate Professional
This, too, may seem counterintuitive, as the seller likely believes that he or she will net more money if they don’t have to pay a real estate commission. With that 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 homes was $185,000 last year. When the buyer knew the seller in FSBO sales, the number sinks to the median selling price of $163,800. However, homes that were sold with the assistance of an agent had a median selling price of $245,000 – nearly $60,000 more for the typical home sale.”
Bottom Line
Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.
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Pricing it a little lower. This makes a lot of strategic sense to me and have heard leading agents coaches even there in the USA emphasizing this point. When more buyers are attracted there is this kind of a auction mentality amongst them and the price is increased as a result.
This does makes sense. Although, I am not a realtor, but as a real estate stager here in Washington, DC I can say that staging a homeowner’s home also makes a huge difference in the best return on investment. As a stager, I share with the homeowner at the time of consultation who their potential buyers are and what they are looking for in the property. Right now there a vast majority of millennials that are home searching and looking for best price. In addition, its about the condition of the home (repairs, upgrades) that will capture the potential buyer’s eyes. These values will increase the sale of a property and in the end, more money and profit.
I agree with Yolanda, especially for millennials. This generation is extremely visual. They need to see the potential of the home. As a stager in Minneapolis, I have honestly seen homes get 10 to 20% more out of their home. Real estate moguel Barbara Corcoran always stages and advocates staging. Staging and pricing it slightly under, achieves multiple offers.
I to am a Stager and would agree that staging ups the value of a property. We need to remember that we buy with our eyes. From food to houses,it is no different. I recently met the buyer of a house that I staged. Her words to me were these. “You did a wonderful job with the staging, obviously, we bought it !”