How To Get The Most Money From The Sale Of Your Home

Dated: 09/25/2017

Views: 13

How to Get the Most Money from the Sale of Your Home


How to Get the Most Money from the Sale of Your Home | MyKCM


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? Here are two keys to ensure that 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).

How to Get the Most Money from the Sale of Your Home | MyKCM

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead 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 make 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.

A new study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.

In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:

“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.”

The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.

Bottom Line

Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.

Want to Advertise on this Site?

Latest Blog Posts

3 Tips For Making Your Dream Of Owning A Home A Reality

3 Tips for Making Your Dream of Owning a Home a Reality Some Highlights: Setting up an automatic savings plan that saves a small amount of every check is one of the best ways to save without

Read More

5 Ways Tax Reform Has Impacted The 2018 Housing Market

5 Ways Tax Reform Has Impacted the 2018 Housing MarketStarting late last year, some predicted that the 2018 tax changes would cripple the housing market. Headlines warned of the potential for double

Read More

Real Estate Tops Best Investment Poll For 5th Year Running

Real Estate Tops Best Investment Poll for 5th Year RunningEvery year, Gallup surveys Americans to determine their choice for the best long-term investment. Respondents are given a

Read More

Home Inspections What To Expect

Home Inspections: What to ExpectSo you made an offer, it was accepted, and now your next task is to have the home inspected prior to closing. Oftentimes, agents make your offer contingent on a

Read More