SELLING YOUR HOME: HOW TO GET THE MOST MONEY

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1. PRICE IT COMPETITIVELY

This may seem counterintuitive when trying to receive the best offer on your home. Most sellers think that they should price their home over market value to leave room for negotiation. However, when they do this, it makes the demand less for this home (meaning little to no negotiations.) See chart below for more details.

A house that’s priced lower could generate higher interest and demand. This means there will be more people interested, and thus more room for negotiations. Buyers will bid against each other, which will result in the potential sales price going up.

Advice from Realtor.com:

“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

YOUR TAKE AWAY

2. USE A REAL ESTATE PROFESSIONAL

A recent study from Collateral Analytics revealed that For Sale By Owner (FSBO) homes don’t actually save the seller money. In many cases, it actually costs them more than it would with an agent.

The study analyzed a sample of homes in different markets from 2016 through the first half of 2017 to find:

“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.”

These results showed that the difference in selling prices between FSBOs and MLS sales of similar properties are about 5.5%. 2017 sales also suggested that the average price for FSBOs was 6% lower than that for similar properties.

You should hire a real estate professional and price your home slightly below value to maximize the demand and price you will receive for your home.

The Impact Of Price On Visibility

The higher you price above market value, the lower the demand