I'm often asked, how do I get the best price in the shortest period of time? With an emphasis on maximizing price. It all comes down to visibility, see the chart below.
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).
So for a typically listing, priced AT market value, about 75% of the public sees it. Raise that price just 10%, 60,000 on a $600,000 home, and it falls to just 60%. Then what happens? I would argue most just swipe their phone and say "Next" because they've seen better at this price point.
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. In that way, thesellerwill not be fighting with abuyerover the price, but instead will havemultiple buyersfighting witheach otherover 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.”
A corollary, is if that highly informed buyer sees you as "too expensive" they never come for a visit. Showings of overpriced listing go way down.
2. Use an experienced, seasoned 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. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.
Research posted by theEconomists’ Outlook Blogrevealed that:
“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 your house at or slightly below the current market value and hire a professional. That will guarantee you maximize the price you get for your house. Sometimes called the "California Model" this IS the way to generate offers, frequently multiple offers. Call us and we'll share how it has worked for us here in Charlotte. It has worked out very well for our clients. Higher prices and shorter DOM.
Author:Connie Massetti Phone: 704-340-5967 Dated: April 13th 2016 Views: 446 About Connie: Licensed agent assistant who coordinates with McDonald Group clients and agents during all aspects o...
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The McDonald Group at Wilkinson ERA is a group of professionals, dedicated to helping our Clients win in real estate. Expert and honest advice, local area knowledge, and seriousness of purpose but with folks who don't take themselves too seriously. The founder Terry McDonald, was a builder for 20 years, and has been a broker for the last 13 years. Buying a home or selling, first home buyer or relocating to Charlotte,the McDonald Group is here to serve. Our client list includes first home buyers to luxury homes, professional athletes, business owners and physicians. From in town to South Charlotte, Lake Norman too, we know Charlotte.
The Group's core values are all about integrity and market expertise. We look out for their clients interest above all others. We are a learning organization, and big believers in training and lifetime learning. Sellers know us for our technological savvy, our aggressive marketing, and the ability to consistently beat the averages in Days on Market. Buyers love us, we never pressure anyone, yet were able to save our Buyer clients 44% off the market average in 2013- and now that the market has changed we win more than our fair share of multiple offer situations.
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