Every homeowner I speak to wants to make sure they maximize their financial gain when they sell their home. But how do you ensure that you receive the maximum value for your house?
I recommend these two steps to homeowners who want to ensure they get the highest price possible:
1. Price the house at market value or a little lower
This may seem counterintuitive, but let’s look at this concept for a moment. Many homeowners think that pricing their home a little over market value will leave them with room for negotiation. In actuality, this just dramatically lessons the demand for their house as shown in this chart:
Instead of the homeowner trying to “win” the negotiation with one buyer, they should price it so that demand for their house is maximized. By doing this, the homeowner will not be fighting with a buyer over the price but will instead have multiple byers fighting with each other over the house.
HGTV gives this advice: “First impressions are everything when selling your house. Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your house will be exposed to all active buyers. If your price is perceived as too high, you will quickly lose this initial audience and find yourself relying only on the trickle of new buyers entering the market each day. Markets are dynamic, and your price has an expiration date. You have one chance to grab attention. Make sure your pricing helps you stand out on the shelf – in a positive way.”
2. Use a Real Estate Professional
This, too, may seem counterintuitive. The homeowner may believe that he or she will make more money without having to pay a real estate commission, but studies have shown that houses typically sell for more money when handled by a real estate professional.
Research by the National Association of Realtors in their 2018 Profile of Home Buyers and Sellers revealed that, “the median selling price for all For Sale by Owners was $200,000 last year. However, houses that were sold with the assistance of an agent had a median selling price of $264,900 – nearly $65,000 more for the typical house sale.”
So to ensure that you maximize the money you get for your house, be sure to price your house at or slightly below the current market value and hire a professional.
If you are thinking about selling your home this year and want to talk more about the proper price point for your house, feel free to reach out to me.