If you are considering taking advantage of this seller’s market, you have probably wondered how much you can get for your home. If you’ve gone a step further, you have already talked to an agent and received a free valuation on your house so you have an idea of what your list price would be. But now comes the question, how do I guarantee the best possible sale price for my home? While there are no guarantees in real estate, there are some things that you can do to put yourself in the best position to make the most when selling your home.
1. Hire a Real Estate Agent
The first and most important thing that you can do to help maximize your profit on your home is not go at it alone. While selling your home yourself may look more profitable at first hand – I mean, you don’t need to pay those dang commission, right? – it could actually hurt you in the long run. There are many reasons for this, but let’s go over a few.
For starters, pricing your home is so important to getting the highest sales price (We will talk about this later.), however, many homeowners do not know how to accurate valuate their home. Inexperience valuating comparable sales leads to a lower list price than necessary or too high a list price making the property sit.
Agents have access to the MLS meaning your home will be in front of the eyes of buyers who are preapproved, actively looking, and ready to make an offer on your home, and it also means you don’t have to weed through and vet them yourself.
Homeowners also enter the selling process with a lot of emotions. It is to be expected because for many homeowners, your home is a private, sacred place. Your agent can help you make the best decisions because they are not emotionally invested in the home in the same way that you are.
Statistics show time and time again that homes listed with a real estate agent sell for more money than though listed for sale by owner. So if you are looking for the biggest payout, go ahead and get someone in your corner!
2. Don’t Skip Home Maintenance
This may seem counterintuitive, and yes, I am asking you to spend a little bit of time and money. But the same saying in business applies here, “You have to spend money to make money.”
Unless they are looking for a property to invest into, most buyers are looking for homes with problems. In fact, avoiding plumbing, electrical, and other maintenance problems is the number one reason those that buy new construction do so, and buyers, in my experience, tend to overestimate the cost of such maintenance issues. It also causes them to look at the home with even more of a magnifying glass thinking, “If they overlooked taking care of this, what else did they miss?”
Have you neglected to change out any filters? Have a leak you’ve been putting off? Have caulk that is in dire need of a refresh? Take a weekend before you list your house and tackle some of these issues.
3. Do Not Overprice Your Home
Again, to many sellers, this piece of advice seems counterintuitive, but it is SO. INCREDIBLY. IMPORTANT.
The most common reasoning behind sellers wanting to price their home higher is that they hope they can then negotiate down to a price that is still higher than the listing price their agent suggests. However, in reality, the opposite typically happens. Buyers see that the house is overpriced and refrain from putting in an offer. The home sits on the market, typically with a few price drops, before finally receiving a low offer. At this point the sellers are exhausted and ready to sell, and they settle for the lower offer which is usually lower than the initial suggested price.
Thoughtfully consider the listing price your agent suggests, and depending on the market, consider even pricing slightly below it. This will spark buyers’ interest from the get go, and hopefully create multiple offers and maybe even a bidding war.
