How to make the most profit when selling your home
In my 8 years of being a Realtor, the biggest topic of concern that sellers have is the profit they can expect to make on the sale of their home. The amount of profit to be made in real estate ultimately begins with the foundation of listing a property for the right price. Pricing a property correctly can be a fine balance between a sellers wants, emotions, needs, and goals vs. market conditions. As a listing agent, my job is to assist sellers in making the best decisions possible to maximize the profit on the sale of their home while balancing current market conditions.
Houses are valued for the market in two ways:
- Comparative Market Analysis (CMA): This report is prepared by a Realtor© based on data in the Multiple Listing Site for comparable homes that are available, under contract, and have recently sold. This information helps seller’s pin-point a price range to list their home and what they can expect to net for the actual sale, days on market, terms for seller concessions, etc.
- Professional Appraisal: The value that a property is given by a professional appraiser hired by a bank or individual property owner.
Either of the methods above can be used to establish a listing price. Most of the time a CMA will suffice for listing price but in the case of properties with unique features (or a discrepancy with opinion) a seller can hire a professional appraiser to provide more definitive price recommendations.
Nailing the price down correctly, and at the beginning of a listing period, is very important for a couple of reasons:
Chances are that your house will sell at its fair market value. Pricing it realistically at the outset simply increases the likelihood for a timely sale with less inconveniences and greater money return.
Buyers educate themselves by viewing many homes. They know what a fair price is. If your house is not competitive in value with those they have seen, it will not sell. Buyers typically look at houses within a $10,000 price range. If your home is not priced within the correct range, it very likely will not be exposed to its potential or targeted buyers.
Overpricing causes most houses to remain on the market too long. Buyers, aware of long exposure period, are often hesitant to make an offer because they fear “something is wrong” with the house. Often houses that are on the market for a long time eventually sell for less than their fair market value.
If overpricing keeps your house from selling promptly, you can end up owning two homes – the one you’ve already purchased and the one you’re trying to sell. This can prove costly, worrisome, as well as inconvenient.
An experienced Realtor will know the in’s and out’s of the local real estate market, conditions, and seasonal trends. The Valerie Tolbirt Team tracks the local and area market statistics twice per month. This data gives us an insight to both the long-term and short-term market conditions. It also gives us the ability to see trends with list price, sales price, list to sales price percentages, days on market, expireds, new listings, under contract, and sold properties. We use this information, in combination with a CMA or professional appraisal, to help our clients determine a good time to sell, establish list price for their property, set realistic expectations, and compare their current listing activity to the surrounding market.
I am always happy to complete a market analysis for properties free of charge. Please contact me if I can be of service or if you have any questions about current market conditions.