Every home seller I meet with wants to get the highest price possible when selling their house. But how can you ensure that you receive maximum value for your house? Here are two tips to making sure you get the highest price possible for your home.
First, Price Your Home at or a Slightly Below the Current Market Value. 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 lessons the demand for your house (see the 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 under priced, especially in areas with low inventory.”
Second, Use a Real Estate Professional 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 that being said, studies have shown that homes typically sell for more money when handled by a real estate professional.
These studies have shown that the median selling price for all For Sale By Owner homes was $185,000 last year. When the buyer knew the seller in For Sale By Owner 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.
So as you can see, pricing your house at or slightly below the current market value and hiring a professional, will help you ensure that you maximize the price you get for your house. Now if you would like to discuss these tips and others to help you maximize the price you can get for your home, feel free to reach out to me.