Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house?
Private~Wai Kai Hale Lagoon in Hoakalei, Ewa Beach
Here are two keys to ensuring you get the highest price possible.
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).
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, 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.
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.”
2. Use a Real Estate Professional
This too may seem counterintuitive. 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 the Economists’ Outlook Blog revealed 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.”
Bottom Line
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.
If you need any information about selling or about buying a home, please contact me.
Aloha for now! See you next time!
MM
Live the dream…Get your Hawaii Life now.
#MicheleSellsHawaii
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September 24, 2018
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