Home Selling Tips

Everyone wants to get the best price when selling your home. But do you know how to do this? Here are 2 keys to help you get the highest price possible.

1. Price it a LITTLE LOW 

This may seem counterintuitive. However, bear with me. Many homeowners believe pricing their home a little OVER market value will leave room for negotiation. In reality, this just dramatically lessens the demand and exposure for your house (see chart below).

Instead of the seller trying to have negotiation room, it should be priced it so that demand for the home is maximized. By doing this, you will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.  The higher you price the house above market value, the fewer number of potential buyers you will have.

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. A seller may think they would net more money if they don’t pay a real estate commission. However, studies have shown that homes typically sell for more money when handled by a real estate professional!

Research posted by the National Association of Realtors revealed that:

“The median selling price for all FSBO homes was $185,000 last year. When the buyer knew the seller in FSBO 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.”

Real Estate Bottom Line

Price your house at or slightly below the current market value and hire a real estate professional.  You will net more.