In the home selling process, one of the first things we establish is the price of your property. It plays a crucial role, not only in the return on your investment but in attracting buyers to purchase your home.
The question that remains now is how do you price your house so that it encourages high offers? Here are a couple of ways.
- Price your home lower than its current market value.
One way to increase the demand for your property is to give it a price tag that is a bit lower than its market value.
For example: if your house is valued at $600,000, list it for $540,000, which is 10 percent less its worth. By doing so, you will increase the visibility of your listing, thereby inviting more buyers to view your home and make an offer.
And once the potential buyers come knocking, what happens next?
Instead of negotiating with one buyer, you will be on the receiving end of multiple offers. In some cases, a bidding war might even happen. If you play it right, you will be able to sell your home for more than its actual market value.
This is in stark contrast to the common method of pricing the property just a bit above its market value. In this situation, you will be negotiating with the buyer to arrive at a figure that’s agreeable to both parties. One potential outcome is you selling your property without maximizing your profit.
- Work with a local realtor.
A lot of home sellers refuse the services of a real estate professional. The rationale behind this is that they believe they are maximizing their potential for profit as they don’t need to pay for commission. Unfortunately, this method does not result to the intended outcome.
According to a 2017 study conducted by Collateral Analytics, properties sold by sellers (also known as “For-Sale-By-Owner” or FSBOs) do not make nor save money. In the results of the study, it was found out that FSBOs usually fetch for lower prices than similar properties sold by listing agents.
Furthermore, the study revealed that FSBO sale prices are often “below the average differential represented by the prevailing commission rate.” In conclusion, FSBO properties sell for less and their maximum potential for profit gone to waste.
Making a good sale, however, is not the only reason why you should enlist the services of a local realtor. When you work with a real estate professional, you gain better market insight, access to a bigger pool of industry contacts, and other services you might not enjoy if you decide to sell your home on your own.
Sell your home for the best price and maximize your profit with Karafotias Realty
Here at Karafotias Realty, we make sure to use the best strategies for the home selling process. This way, you not only increase your chances of selling your home for a high price, you also open the doors to the best buyer.