Undoubtedly every Seller would like to obtain the highest sales price, when selling their home. But how can a Seller better their odds of receiving maximum value for their house?

Here are 2 key factors to help ensure you get the highest price possible, in the current market:

1. Price it a LITTLE Low

This statement may seem like madness and counter-productive, but let us examine this concept for a moment.
It is not uncommon for Sellers to think that pricing their home a little OVER market value will leave them with room for negotiation.  But in reality, this strategy dramatically lessens the demand for their house, compared to the competition and they ultimately end up with lower sales price, after it remains on the market for an extended period. (See chart below)

As you can see from the chart above, an inverse relationship occurs with pricing.  The higher the house is priced OVER Market; the lower amount of Buyers it ultimately attracts.

As you will note, a house priced at “Market Value” should generally attract 60% of the active Buyers in the market. However a Seller that OVER prices their house by just 10% above “Market Value” loses half of those potential Buyers (now attracting only 30%). This can have a devastating effect!!

Instead of the Seller trying to ‘win’ the negotiation with one Buyer, they would be better served by pricing the house at a point where Buyer demand is maximized. By doing so, the Seller would likely not be fighting with a Buyer over the price, but may instead have multiple Buyers fighting amongst themselves, in order to be the successful purchaser.

Realtor. com, gives us this guidance:

“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

On the surface, this too may seem counter-productive, as many Sellers mistakenly believe that they will net more money, if they do not have to compensate a real estate agent.

The fact is numerous studies show homes typically sell for more money when handled by a competent real estate professional.

Research posted by the National Association of Realtors shows 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.”

Bottom Line

By pricing the house on the market at or slightly below the current market value and hiring a competent real estate professional, Sellers will undoubtedly maximize their net. Call or text me at 727.755.3434 and I would be glad to help you maximize your net.