How To Get The Most Money From The Sale Of Your Home

Dated: 09/27/2017

Views: 97

Image title

Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that 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 actuality, this just dramatically lessens the demand for your house (see chart below).

Image title

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. The seller may think they would make 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 more money when handled by a real estate professional.

A new 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.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. 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 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

Gillian Cunningham

Gillian Cunningham’s name is synonymous with true professionalism, extraordinary knowledge, exceptional customer service, strong work ethic and high integrity standards. Gillian’s personal approac....

Latest Blog Posts

6 Reasons You Should Never Buy or Sell a Home Without an Agent

6 Reasons You Should Never Buy or Sell a Home Without an Agent Manfred Rutz/Getty ImagesIt's a slow Sunday morning. You've just brewed your Nespresso and popped open your laptop 

Read More

Seven Home Ownership Myths Holding You Back?

Replace any homeownership fears with facts... Do you want to see the fears that might be holding you back in your home search?1. "I can't afford to buy a home now." FACT: If you're paying rent, you

Read More

Homebuilder sentiment improves in October as lumber prices fall

A monthly sentiment survey from the National Association of Home Builders rises one point in October to 68. Anything above 50 is considered positive.The index is unchanged from October 2017.Lumber

Read More

Rain, rain, go away. How drainage affects your property.

Rain, rain, go away. How drainage affects your property.A little rain may be just what our plants and trees need after our dry summers, but a lot of rain can become a problem for some properties.

Read More