Every homeowner wants to make sure
they maximize their financial reward 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 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).
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 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 this being said, 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.”
Bottom
Line
Price your house at or slightly
below the current market value and hire a professional. That will guarantee you
maximize the price you get for your house.
Article by the
by The KCM Crew.