How to get the best price for your home

Not long ago, home sellers were in their heyday, as historically-low mortgage rates triggered a real estate buying frenzy, spurring multiple offers. However, the Federal Reserve shut down the party when it began raising interest rates.  Now, it’s not as simple to sell a home. While pandemic-era home buyers were racing the clock—trying to lock in a low mortgage rate and gain a foothold in the market—current buyers are more discerning. Higher prices and mortgage rates have pushed their limits of affordability, leading them to prioritize cost, condition, and overall value.

The reality is, home inventory remains at record lows, so most properties will still sell with some basic prep, the right price, and a good real estate agent. But owners who go the extra mile are more likely to sell faster and for a higher profit. If you have plans to sell your home, and are looking to net the most money possible, this list is for you. Here are our top seven strategies to attract the best offers and maximize your real estate returns.

• GET PRE-LISTING INSPECTIONS

Many homebuyers hire a professional to complete a home inspection before they close. But, if a seller orders their own pre-listing inspections, with a local, well-respected inspection company, they can often expect offers to be presented without an inspection contingency, which greatly reduces the risk of cancellation, or price renegotiation.

Having pre-listing inspections shows interested buyers that you’re committed to a transparent transaction. This can help you market your home, strengthen your negotiating position, and minimize roadblocks to closing. 

Of course, it’s always possible that a pre-listing home inspection, which looks at the home’s major systems and structures, among other things, could turn up a significant problem. This does carry some risk, as you’re required to disclose any issues to potential buyers. However, in most cases, it’s better to know about and/or address deficiencies upfront than to find out mid-transaction, when it could cost you more in the form of concessions, a delayed closing, or even a canceled sale. It also helps buyers make a more accurate assessment of value.

We can help you schedule home and pest inspections, in preparing your home for sale. And if the inspection report identifies any concerns, we can advise on which items need attention, and what effect that might have on value, before you list your home, and even give you referrals to trusted contractors who can fix any deficiencies.

• CONSIDER STRATEGIC UPGRADES

Embarking on major renovations before putting your property on the market doesn’t always make financial sense, unless your property has been in a state of disrepair which makes it uninhabitable. Your home has to meet certain health and safety requirements before a lender will approve a loan, so selling an uninhabitable property cuts down your buyer pool by excluding those buyers who are using a loan for purchase. However, certain upgrades are more likely to pay off and can help elevate your home in the eyes of buyers.

For example, refinishing hardwood floors results in an average 147% return on investment at resale and new garage doors typically pay for themselves.  Similarly, research shows that professional landscaping can boost a home’s value by as much as 20%. In our market in particular, upgrading kitchens and baths seem to have the largest impact, often times bringing you more than 100% return on your investment. Often even simple, less expensive fixes can make a big difference in how your home photographs, and is perceived by buyers. A fresh coat of paint in a neutral color, modern light fixtures and hardware, and new caulk around the tub or shower can help your property look its best.  

Before you make any changes to your home, reach out. We know what buyers in your neighborhood are looking for, and can help you determine which improvements will bring you the best return on your investment.

• HIRE A HOME STAGER

To get standout offers, you need potential buyers to fall in love with your home—and they’re much more likely to do so if they can envision themselves in the space. That’s where home staging comes in. Staging can include everything from decluttering and packing away personal items to decorating the entire property. 

According to the National Association of Realtors, home staging can both increase the dollar value of home offers and help a property sell faster. In fact, 53% of seller’s agents agree that staging decreases the amount of time a home spends on the market, and 44% of buyer’s agents see higher offers for staged homes. These are national averages. Staging is far more necessary in our market, and can mean a price difference of more than $100k in some instances. When you consider that over 98% of people start their home shopping online, and the professional photos that show up there need to show your home in its best light, you will understand how important staging is. There’s plenty of strategy and research behind the process, so it’s smart to consider a professional. Reach out for a connection to our recommended home stagers who can help your property show its full potential.

• EMPLOY A COMPETITIVE PRICING STRATEGY

While it’s tempting to list your property at the highest possible price, that approach almost always backfires in our market. Homes that are overpriced tend to sit on the market, which can drive away potential buyers, and drive down both price and the number of offers.  

Every market is a little different. In ours, if you price your home competitively, which is at least 10-15% below market value, you can be sure that the largest pool of potential buyers will be reached by your marketing, which increases the number of competing buyers, and hence the price. Remember that buyers start their search online and very often set up automatic search parameters to capture all of the listings within a certain price range, knowing that the actual sale price will be 10-15% higher. If you’re priced too high, your listing isn’t even included in their search.

To help you list at the right price, we will do a comparative market analysis, or CMA. This integral piece of research will help us determine an ideal listing price based on the amount that comparable properties have recently sold for in your neighborhood. Comparable properties, sometimes called comps, are those sold in the last few months in your neighborhood that are about in the same condition, have approximately the same amenities, and are approximately the same lot and living space size with similar bedroom and bathroom count. This is the same criteria an appraiser will use, so we can be fairly certain the appraisal will come in pretty close to the same value.

Without this data, you risk pricing your home inaccurately, which will result in a longer time on the market and lower return on investment. Combined with our local market insights, we’ll help you find that sweet spot that will attract the best offers while maximizing your profit margin.

• OFFER BUYER INCENTIVES

Sometimes, sweetening the deal with buyer incentives can help you get the best possible offer. Incentives are especially helpful in high priced markets, when many buyers are struggling with affordability and concerned about their monthly payments. 

Options that can pay off include:

• Buying down their interest rate – You can pay an upfront sum to reduce the buyer’s mortgage rate in exchange for a comesurate price increase. This approach can save far more than that cost over the life of the loan, meaning it’s worth more to the buyer than a simple price reduction.
• Offering closing cost credits – You might pay a set amount or a certain percentage of the buyer’s closing costs.
• Paying HOA costs – You could cover homeowner association or condominium fees for a set period of time.
• Including furniture or appliances in the sale – If your buyer is interested, throwing in the furniture or appliances that they want and need can make your property more appealing. You do however have to be careful to make note that they are being offered at no value (gifted) to avoid paying extra tax on personal property, or affecting the home value in an appraisal. 

Buyer incentives vary and valuing them can get complicated. We’re happy to talk through the options that might make sense for you. 

• USE A PROVEN PROPERTY MARKETING PLAN

Gone are the days when it was enough to put a “for sale” sign in your yard and place a listing on the MLS. A strategic marketing plan is now essential to get your home in front of as many interested and qualified buyers as possible. 

The truth is, buyers who don’t know about your house can’t make an offer. That’s why we utilize a multi-step approach to marketing that starts with identifying your target audience, effectively positioning your home in the market, and communicating its unique value. We then use a variety of distribution channels to connect with potential agents and buyers and performance-based metrics to monitor and improve our campaign results.

Our proven approach can have a big impact on the success of your sale. Reach out to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home.

• WORK WITH AN AGENT WHO KNOWS YOUR MARKET

To get the best offers possible, you need a local experienced real estate agent who knows your area inside and out. 

Any agent can pull comparable sales data, but in a quickly-evolving market, even the latest comps can lag the current market reality. We have our fingers on the pulse of the local market because we’re working directly with sellers like you, as well as their agents for up to the minute data. We also represent local buyers who are active in the market, searching for homes like yours. We are also active in our broker and agent communities, so can access the most up to date data from newly contracted homes that haven’t yet posted the sales info.

That puts us in an ideal position to help you price your home for a quick sale and maximum profit. And since we hear first-hand what local buyers want, we can help you prep your home to broaden its appeal and highlight its most-coveted features. Additionally, we can use our extensive network of local agents to solicit feedback and get your home in front of more potential buyers. 

All of these factors can add up to a significant difference in your profit: In 2021, nationally, the typical home sold by owner went for $225,000 compared to a median price of $330,000 for agent-assisted home sales. In our market, since the current median price of a home is about $1,250,000.10, that translates to about a $400,000 difference between a home sold by the owner and one sold by a professional Realtor, who can deliver more far-reaching marketing, better buyer attraction through networking, and professional preparation.

LET’S GET MOVING

Are you ready to get a great offer for your home? Our multifaceted approach can help you maximize your real estate returns. Reach out for a free home value assessment and customized sales plan to get started!

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.