Every home seller wants to maximize their final sale price. Here’s our best strategy for doing so.
Traditionally, home sellers meet with an agent, look at comparable sales, look at your current competition, consider the aspects of the market in your area, consider interest rates, then generally come up with a price that you think your home is worth.
We already know that a home is worth whatever a buyer is willing to pay for it. If you think your home is worth $1 million, but you can’t get anyone to pay $1 million, then it’s not worth $1 million in the end. You have to come up with a price that your home will sell for based on what a buyer thinks it’s worth.
If you’ve been to an auction before, you know that sometimes peoples’ competitive spirit can take over. When people get competitive, they often lose sight of what’s important. Many people go to auctions looking for a great deal, but end up leaving paying a premium for something that they really wanted because of the transparent bidding. When there’s someone in this room willing to pay more than you, you might want to end up paying more than they are willing to.
In this kind of market, we love to give buyers the ability to determine what they feel is market value. We do this by pricing the home a little aggressively and slightly below market value. Once that home gets listed, everyone is going to see the price, and that’s going to get them through the door. You’re dangling a carrot and showing buyers that they could be missing out on a huge deal. Once you attract the masses, you’ll start to receive offers, and the bidding wars will commence.
Many times, we have been able to sell homes for more than we thought they were worth on paper through this strategy. Buyers are willing to pay a little bit more than they have to in a hot market like this when there’s a lot of competition.
If you want to sell your home for the absolute best price, this is the strategy we recommend. If you have any questions for me about our home-selling strategies, or anything else related to real estate, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.