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2 Ways to Get the Best Price for Your Central Wisconsin Home!!

By
Real Estate Agent with Woodland Management Service / Woodland Real Estate, KW Diversified #1 in Forest Land Mgmt

2 Ways to Get the Best Price for Your Central Wisconsin Home!

Selling Your Home? Here’s 2 Ways to Get the Best Price!

 

 

Every homeowner wants to make sure that they maximize their financial reward when selling their home, but how do you guarantee that you receive the maximum value for your house?

Here are two ways to ensure that you get the highest price possible.

1. Price it a Little Low

This may seem counterintuitive, but let’s take a look at this concept for a moment. Many homeowners think that pricing their homes a little OVER market value will leave them with room for negotiation when, in actuality, it just dramatically lessens the demand for their houses (see chart below).

Selling Your Home? Here’s 2 Ways to Get the Best Price! | Keeping Current Matters

Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price their house so that demand for the home is maximized. By doing so, 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 as the seller may think that he or she will make more money by avoiding a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by real estate professionals.

A 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. 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 sales 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 like those at Woodland Real Estate, Keller Williams Fox Cities.

This will guarantee that you maximize the price you get for your house.

 

 

Thanks to Keeping Current Matters for the contents of this post, valuable information for all home sellers who want to maximize their sales price!

Comments (7)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Yes to both, Bob! I've used that "price it a bit low" strategy and it always works!

Jul 08, 2019 04:59 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Bob. Having a professional that knows the market is an essential step to proper pricing. Enjoy your day!

Jul 08, 2019 05:33 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bob this is good advice, but sometimes Sellers have a hard time accepting it.

Jul 08, 2019 06:47 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Bob Crane - both are very necessary.  Using a Realtor is a no brainer but pricing slightly lower is a great strategy.

Jul 08, 2019 10:01 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

HI Bob Crane - What you have written is so true but our biggest challenge is getting sellers to understand it!  FSBOs are even tougher to deal with. They think they have all the answers. 

I sold 3 of my homes which I felt gave me a leg-up when becoming a REALTOR®.  I couldn't believe what I have learned (and didn't know) and my experience and marketing can only help sellers to get the very best experience and return for their property. 

Jul 08, 2019 10:20 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

If you can convince the seller to do the slightly below pricing then that's a great way to curry interest. Problem I have is most of my sellers have overpriced their homes & we end up working the other way.

Jul 08, 2019 02:25 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Bob,

Great blog post on the issues of pricing a property properly for the market.

Jul 08, 2019 11:08 PM