Selling Your Home? Here’s 2 Ways to Get the Best Price!

Dated: 07/29/2018

Views: 37

Selling Your Home? Here’s 2 Ways to Get the Best Price! | Simplifying The Market
Every homeowner wants to make sure that they maximize their financial reward when selling their home, but how do you guarantee that you receive the maximum value for your house?

Here are two ways to ensure that you get the highest price possible.

1. Price it a Little Low

This may seem counterintuitive, but let’s take a look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation when, in actuality, it just dramatically lessens the demand for their houses (see chart below).

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, 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 may think that he or she will make more money by avoiding a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by real estate professionals.

study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent. The data showed that:

“FSBOs tend to sell for lower prices than comparable home sales, and in many cases 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 similar properties, is about 5.5%. Sales in 2017 suggest the average sales price was near 6% lower for FSBO sales of similar properties.

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.

Blog author image

Paul Franklin

A Straight Shooter... Making personal connections is so valuable. Like any other important relationship in your life, the one you build with a real estate professional should have a foundation of t....

Latest Blog Posts

Home Sales Expected to Continue Increasing in 2019

Tuesday August 28th, 2018  For Sellers, Housing Market Updates, Move-Up BuyersFreddie Mac, Fannie Mae, and the Mortgage Bankers Association are all

Read More

The Net Worth of a Homeowner is 44x Greater Than A Renter!

Monday August 20th, 2018  First Time Home Buyers, For Buyers, Move-Up Buyers, Rent vs. BuyEvery three years, the Federal Reserve conducts their Survey of

Read More

Supply & Demand Will Determine Future Home Values

 Thursday August 9th, 2018  For Buyers, For Sellers, Housing Market Updates, PricingWill home values continue to appreciate throughout 2018? The answer is simple: YES!

Read More

Housing Market: Another Gigantic Difference Between 2008 and 2018

Thursday August 16th, 2018  First Time Home Buyers, For Buyers, For Sellers, Housing Market Updates, Move-Up BuyersSome are attempting to compare the current housing

Read More