When you decide to put your home on the market, one of your primary goals will be to receive the greatest possible return on your investment. Below are strategies for achieving that goal that might not seem logical at first glance…but when you review the advantages they provide, you’ll understand how they can lead to a more successful sale.
Work with a Real Estate Broker
Far too many home sellers make the choice to go the For Sale By Owner (FSBO) route, assuming that they stand to gain more from the sale by not having to pay a split to a realtor. What these FSBO sellers might not recognize is that the resources they gain by hiring a talented broker more than justify the cost of the commission.
A broker will be able to:
- professionally market the listing
- utilize networks to engage a larger field of buyers
- negotiate offers
- provide key resources such as photographers, stagers and repair staff
Studies have indicated that the median price for a home sold by the owner averages 40,000 less than the median price for a home sold with a broker’s assistance:
Average Sale with Broker: $259,000
Average FSBO Sale: $219,000
This median drops to nearly $100,000 less if the seller knows the buyer personally–which is why it can help to work with somebody who won’t be swayed by a buyer’s plea to emotions or personal history! (Source: Economists’ Outlook, National Association of Realtors)
List Slightly Below Market Value
Your broker will have the information to help you determine a decent estimate for your home’s value. They will assess:
- Market conditions
- Mortgage rates
- Recent home sales in your area
Your instinct will be to list your home initially at greater than market value, so you have room to negotiate downwards when buyers begin to make offers. What you might be inadvertently doing is driving buyers away–reducing your property’s potential value by stifling demand.
Instead, consider initially pricing your home at or even slightly less than market value. Attracting more buyers with a great deal allows you to create competition among them–so you have a better chance of receiving an offer that rises to the above-market-value price you actually want.
