One of a seller’s greatest fears is the thought of not maximizing the return on their home. This fear is especially valid in Eugene’s current seller’s market. Prices are appreciating and many sellers have experienced multiple, even simultaneous offers. But in such a competitive market, how do you know you’re getting the most money for your home? To ensure you leave no money on the table in the sale of your home, use these three essential strategies: select the right counsel for your home sale, research real estate market trends for initial list price, and execute a pricing and marketing strategy.
Select the Right Counsel
Beginning the home-selling process involves more than setting a list price. Choosing the counsel and strategy for your sale are essential, as well. Unfortunately, the typical interview process for Realtors can confuse these priorities. Traditionally, Realtors are invited by a potential client to walk through their home. When the Realtor returns to the home to present their price analysis, the seller decides whether they are comfortable employing that Realtor. Only after the Realtor is hired will they develop a marketing strategy. This process ties the Realtor’s job interview and home price decision together. Instead of hiring a Realtor who tells you they can sell your home for a high price, focus on their ability to analyze the local market and their willingness to provide evidence of a successful sales record of homes similar to your own.
Research Initial List Price
Home sales, like sales of any product, are influenced by supply and demand. Home sellers are impacted by how many other people are looking for homes (demand). They are also impacted by how many similar homes are available to buy in their area (supply). Researching recent sales and current listings of similar properties near your home is a great strategy for understanding the current supply and demand within your market. This knowledge will allow you to price your home to sell. Absorption rate, the rate at which homes in your area have sold in the recent past, is another indicator of how aggressively to price your home. Close analysis of recent home sales, current market competition and the absorption rate prepare you to establish a competitive list price for your home.
Execute a Pricing and Marketing Strategy for Your Home Sale
A selling strategy must be established before putting a home on the market. In a robust seller’s market one strategy is to list the home for a higher price than has ever been successful previously. This is known as leading the market. This pricing technique requires fluid and responsive management. If a home is marketed well to potential buyers, and no one is responding to your listing, then it is not listed at the right price. So, keeping it at that price for too long could mean having to discount the price below market value to get attention late in the game.
An alternative strategy is to price the home at, or just below, its likely sale price and set a future date to review offers. If executed properly, and respectfully, this strategy will create an auction atmosphere for buyers, and optimize the seller’s final sales price and terms. Defining your selling strategy, listening to market feedback, and changing your list price according to buyer response is the best way to ensure you get the highest return on your home sale.