2 tips on national home sales.
Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive the 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, but lets look at this concept for a moment.
Many homeowners think that pricing their homes a little OVER market value will leave them with 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. 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. Todays buyers are highly informed, so if they sense theyre getting a deal, theyre likely to bid up a property thats slightly underpriced, especially in areas with low inventory.
2. Use a real estate professional…aka a broker
This, too, may seem counterintuitive. The seller may think they would make more money if they didnt 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 study by Collateral Analytics, reveals that FSBOs dont 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.
Navigating the Seattle real estate market is a little different.
It’s a beautiful big city, and one of the fastest growing cities in the US. Yes, Seattle has a lot to offer, including a very competitive real estate market. So when it comes to buying or selling a home, you’ll definitely want to consult a professional who knows how to navigate our current and changing market.
Action options for you
Download the latest copy of the Metropolist Magazine for data, trends and case study stories of recent commercial and residential real estate stories.
Connect with your trusted Metropolist broker and review this 12-page, Seattle-specific resource with that broker.