Sellers always want to make sure they get the highest possible price when selling their home. But how can you practically guarantee that you receive the maximum value for your house? Here are two ways to ensuring you get the highest price possible.
Price it on the low side
This may seem counterproductive. 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 one buyer over the price, but instead will have multiple buyers fighting with each other over the house. Simply put let the buyers fight among themselves to buy your house instead of you haggling with one buyer and trying to get the most money out of that one person.
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.”
Use a Real Estate Agent
This too may seem counterproductive. 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 a lot more money when handled by a real estate professional.
Real Estate advertising is 100% percent internet driven. As a home seller you can not get your house on 100 plus websites all at the same time and you certainly can not place your home in the Multiple Listing Services where the Realtors are looking for houses for their pre-approved buyers. In addition as Seller Agents we create keyword rich descriptions and use a maximum amount of HD photos to enhance each and every listing to get your home “advertisement” to the top of search engines. We have the ability to mail advertisements to entire cities featuring your home with the click of a button. We don’t wait for the buyers. We create the demand.
With a for sale by owner you can put up a sign, place your house on a few sites and hope someone comes or calls. Furthermore you can’t be sure they are actual buyers or can afford the house.
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.”
The chart above shows that on average you should net about 10% percent more by using a Real Estate Agent. 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.
The opinions expressed here within are my own completely independent of BHGRE Coccia Realty and its owners and subsidiaries.
Thinking of buying or selling a home? Contact me for a Real Estate consultation. My information is below. I look forward to hearing from you.
Raymond Ciampaglia, Realtor®
Better Homes and Gardens Real Estate | Coccia Realty
424 Valley Brook Ave | Lyndhurst, NJ 07071
Office: (201)939-8900 | Fax: (201)939-8910
#BeBetter #BHGRE #NJRealEstate #NJRealtor