Every homeowner wants to ensure they maximize their financial prize when selling their home. But how can you guarantee you get maximum value for your house? Here are two keys to make sure that you get the best price possible.
1. Price it just a little LOW
This may appear counterintuitive. However, let’s look at this concept for a moment. Many homeowners believe pricing their home a little OVER market worth will leave them area for negotiation. In actuality, this just significantly lessens the demand for your house (see chart below).
Rather than the seller trying to ‘win’ the negotiation with one buyer, they should price it to ensure that demand for the house is maximized. Using this method, the seller will never be fighting with a buyer over the purchase price, but will instead have multiple purchasers fighting with one another over the house.
Realtor.com gives this advice:
“Aim to price your premises at or just slightly below the going price. Today’s buyers are highly educated, so if they sense they’re obtaining a deal, they’re more likely to bid up a property that’s slightly underpriced, specifically in areas with low inventory.”
2. Use a genuine Estate Professional
This, too, may appear counterintuitive. Owner may think they would make more money if they didn’t have to pay a real estate commission. With this getting said, studies have proven that homes typically sell for additional money when handled by a genuine estate professional. A new research by Collateral Analytics, reveals that FSBOs don’t actually save hardly any money, and in some cases could be costing themselves more, by not listing with an agent. In the analysis, they analyzed home product sales in a variety of markets in 2016 and the first half of 2017. The info showed that: “FSBOs tend to sell for decrease prices than comparable home sales, and perhaps below the average differential represented by the prevailing commission rate.” The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of comparable properties is about 5.5%. Sales in 2017 recommend the average cost was near 6% lower for FSBO sales of very similar properties.
Price your home at or somewhat below the current market value and hire a specialist. This will guarantee that you maximize the price you get for your home.
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