March 13th, 2017 By Bryan Cerny in Blog,Buying and Selling Real Estate,Chesapeake,Home Sellers,Houses,Listings,Senior Topics and Decisons. Tags: Bidding War, Home Pricing, Home Seller, Housing Market, How to Price Your Home, Make More for Selling Your House, Use a Realtor
For some Sellers, it is very counter intuitive to take the advise noted below.
Some may ask, “How can pricing my Chesapeake home below market, help me get the most possible?” This is a fair question that is answered below. But to clarify the point made: homes sell more quickly even as home values are increasing(as they are now) due to the home buyer’s desire not to overpay for the house being bought.
A home seller may think that this need of the Chesapeake buyer would cause him or her to have their competively priced home sold for even less than asking. No doubt this could happen. Yet, in my experience, the buyer’s perceived need is frequently over takne by the desire to get the house that “makes their heart sing”.
In other words, by getting more buyers to see your home via competitive pricing, a Chesapeake seller can find a home buyer that truly loves their house or perhaps two or three home buyers that find the value compelling. With the second possibility, the Chesapeake seller gets his/her dream: a bidding war.
A home seller seriously dampens this possibility by over pricing his house.
Every homeowner wants to make sure they get the best price 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 counterintuitive. 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 reality, this just dramatically lessens the demand for their 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. By doing this, 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 likely believes that he or she will net more money if they don’t have to pay a real estate commission. With that being said, 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.”
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.
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