Are you getting less for your house than it's worth?
People always want to know, “what kind of market is it? A buyer’s market? Or a seller’s market?”
Right now in almost all of Philadelphia the answer is we are in a strong seller’s market, which is great news if you’re a home seller looking to maximize your profits, avoid making repairs, and even minimize your closing costs. No matter where you list your house, it’s going under contract quickly AND for over asking price.
But believe it or not, now it’s more important than ever to list your house with a proven professional, here’s why:
On Point Pricing
Where you price your home matters, even in a seller’s market!
We’ve all heard stories about pricing your house too high from the start and it ends up sitting on the market while other houses in the neighborhood are selling in a flash, BUT what if your agent priced your house too low?
It happens. Price point is one way we can strategically dial in the most favorable offer terms for you, but it takes finesse to learn the “sweet spot” in the market, where we can drive competition and interest, but not scare always potential buyers from pricing that strays too far from the market norms. Yes, you may still see a bidding war if you underprice your home, but are the buyers who can and will bring you top dollar for your home bidding? Maybe not. A very low price can indicate several things: hidden problems in the home or an inexperienced listing agent who isn’t familiar with the market and property. Qualified buyers may shy away from considering perfectly acceptable homes simply because they weren’t positioned in the most ideal light.
Negotiation Know-How
Choose an agent with skill to negotiate and close the best offer.
Open up Instagram and type in real estate - every agent and their mom is sharing how they just put their listing under contract for over asking. But what does that really mean? If their valuation and pricing was off, not much.
The strongest indicator of a truly aggressive and record setting price (the one you want to reach for) is how the sales price stacks up against the most recent, most similar homes just sold in the area. A house selling for over asking price that’s still priced under comparable is not a success story.
Your agent should be skilled enough to push the limits of the market with pricing and be prepared to justify that price with appraisers.
It takes a deep familiarity with the local market values and trends to navigate sales at the top of the market, and when you’re working in that range, it’s good to protect your sales price by requiring safeguard terms in your contract placing the responsibility to cover the difference between sales price and appraised value on buyer, rather than opening yourself up to renegotiations after you have an appraisal in hand. It’s important to note as well that appraisals for FHA loans will stay with the property for 6 months. All in all, having an appraisal come in short of the sales price is something you want to avoid at all costs, and always have a contingency plan in place to protect your bottom line.
Recognizing the Right Buyer
It might sound silly, but one thing to look out for in negotiations is finding the right buyer. Sometimes we receive offers with favorable terms, but the buyer’s or agent’s behavior indicates there could be tension and delays or even that this deal might not go through. Some areas to scrutinize very closely are: offer presentation, buyer’s financial ability, the strength of the buyer’s pre-approval and lender, buyer’s motivation (is it solid or are they waffling on buying your house or any house. Are they looking to make it work? Or are they looking for a way out?) Your agent is your guide; he/she will ask you questions and help navigate the market. Dig below the “most attractive” offer to make sure it’s the best offer for you and your home.
You should have a solid relationship with your agent and be confident in his/her knowledge of the market and trends in your neighborhood. Ask your agent for the market data for your home, which all agents can easily access and prepare. You can see the value of your home compared with similar homes in the area, what has recently sold, how many properties are “active” (for sale) and how many are pending. Your market data could cover ½ a block in a city or miles if you live in the country. If your house is unique ie. it has a pond, in-law suite or a tennis court, your agent may have to do a little leg work to find a similar home to compare it with and that’s why you hired them!
With the Q and U Team at Compass, you can rest assured that your agent will have up-to-the minute information on the market and Compass’ state of the art technology to get your property priced right the first time, making this process as seamless as possible!
Thinking of selling your home and want to position yourself for the best offer?
What if we worked together well before a sale and put my expertise to work for you in preparing your
home for market?
We'll assess the market and opportunities for home improvements that will increase your home's value -- and through our exclusive program, we'll front the cost!
Want to know more?
Let’s set up a quick call to review your home and goals and I’ll create a customized plan for you to get your home sold for top dollar!