How to Get the Most Money from the Sale of Your House
Every homeowner wants to make sure they maximize the financial reward when selling their home. But, how do you guarantee that you receive maximum value for your house? Here are two keys to insuring you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counter-intuitive. 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)
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.
In a recent article on realtor.com, they gave 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 under-priced, especially in areas with low inventory.”
2. Use a Real Estate Professional
This too may seem counter-intuitive. The seller may 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.”
Bottom Line
Price it at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house.
http://www.simplifyingthemarket.com/2015/11/18/how-to-get-the-most-money-from-the-sale-of-your-house/?a=10080-d5a25b33977d725e846b045bfa182841
I think you hit it spot on when you said, “Every homewonwer wants to make sure they maximize the financial reward when selling their home.” I think your idea of pricing the home at a little lower, competitive price is really strategic. I think, in the future, that is what I’ll do. That way we can have multiple potential buyers bidding for our home. Thanks for the great suggestions on how to sell our house.
My wife and I will be moving at the end of this summer and we aren’t sure how the whole selling process works. We want to make sure that we do this right and get the most out of it that we can while being fair as well. This article helped and I feel much better about this process.
My father talked to me about his plan to sell his home a little higher. Seeing the advice that was given in the first tip got me thinking about sharing it with him. Just how low would he need to set the price of his home at?
I really need to look up to this post because rates has been varying timely can I rent it I can earn more profit from that I am not in mood to sell such good apartment when I am low on business.
I want to make sure I get the most out of selling my house. I didn’t know that using a real estate professional could be so helpful! It makes sense, since they know exactly what people are looking for in a home.