Every homeowner asks me what strategies I suggest to get them the most money for their home. Here are two surprising suggestions I have found which often do the trick.
1. Price it a LITTLE LOW
This may seem counter-intuitive, but hear me out. 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)
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so demand for the home is maximized. In that way, the seller will not be fighting with a buyer over the price but instead will have multiple buyers fighting with each other over the house. Even in a flat market like we have in the Hudson Valley, I have seen bidding wars. But I have seldom seen them occur on an overpriced property.
In a recent article on realtor.com, they agree on this strategy:
“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 under-priced.”
2. Use a Real Estate Professional
This may sound a bit self-serving coming from a real estate broker, but the statistics bear me out. Sellers often think they would net more money if they didn’t have to pay a real estate commission. Yet, studies have shown that typically homes sell for more money when handled by a real estate professional.
Recent research posted by the Economists’ Outlook Blog revealed:
“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.”
Price it at or slightly below the current market value and hire a professional. That will give you a far better chance to maximize the price you get for your house and sell it in a timely manner.