Every homeowner wants to make sure they get the best price when selling their home. But how do you guarantee that you receive maximum value for your house? This “tactic” seems to be working out very well for many sellers: Price it a LITTLE LOW.
This may seem counter-intuitive. 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 reality; this just dramatically lessens the demand for their house (see chart below).
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 under-priced, especially in areas with low inventory.”
Our team of home loans professionals are likely in your local community and we’d love to talk to you about your financial and home ownership goals.
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