In this article, we’re going to mainly talk about selling your home for higher than its market value. However, to do that, we first need to cover the 3 ways you can price your home during listing
1.) Price it Above Market Value
This can be a great way to seize an immediate opportunity to accept an above-market offer. If you have a unique property, there may be those buyers willing to pay up that extra bit to lock it in. However, this may not be the case for you, and this often leads to potential buyers completely skipping over the attention-grabbing new listing, months of sitting on the market, and a series of later price cuts. Coming with a price that’s higher than market value has the benefit of being able to be reduced in price later, but this data does can and does show up for prospective buyers, which may result in harder negotiations later on.
Here’s a couple of indications that the price is too high for the current market:
- You don’t get an appropriate number of showings the first few weeks. Depends on the area, but in Winchester, VA I would say fewer than 5 showings in the first week is not a healthy sign.
- Sitting on the Market without an offer for three weeks to a month.
Listing above market value is certainly riskier, but it can potentially pay off well if it’s done appropriately and not absurdly high. There should be an expectation to wait longer for a sale and understanding that the price will need to come down if buyers just aren’t showing up. Also keep in mind it may lose appeal by sitting too long or continually being price reduced. This won’t help in getting your home sold above market like this article is describing.
2.) Pricing it Below Market Value
This one is controversial to many professionals, but I have found great success in low inventory markets such as the ones throughout Northern Virginia currently. It may seem silly, but when buyers are looking at a competitive market, pricing below can really bring a lot of attention to your home and buyers to the table. I can’t tell you how many overeager buyers I’ve seen across the table over the years, but rest assured this method can yield some amazing results. Bidding wars among buyers can be very beneficial to a seller, and my advice would vary depending on other circumstances. Bear in mind, there is such a thing as TOO low, so if you’re not willing to accept an all-cash offer at your listing price, it’s not advised. If you’ve listed below market, you’ll see some telltale signs of course:
- Lots of calls and showing requests in your first week
- Minimum of one offer in the first week
3.) Pricing at Market Value
Want to play it safe? This one’s for you.
This method is able to reduce your risk of sittign on the market for too long, or even worse, selling a home for less than market value. Homes in my area usually sell within a few points of the asking price depending on the neighborhood. If you’re getting several showings per week consistently and getting under contract within a few weeks, then it’s probably because you priced right around market value.
Pricing your home is a game of numbers and timing. If you need a trained agent to determine what your home’s current value is, drop me a line here:
https://brockharrishomes.com/home-valuation/
Now on to the juicy details…
So now you must be asking, “Well just HOW do I get more than market value for my home?” Here’s my list of things to do that can boost your home’s value and yield a selling price higher than market value:
1.) Choose the Right Time To Sell
I always suggest understanding your local market and take great time and effort to do so myself. Home sales rates change with the seasons. Spring will usually bring about the most buyers because many people prefer moving when it isn’t freezing cold out and when the kids will be finishing up or out of school. This can change depending on location, but it’s not the only variable to think about when timing your sale. Sometimes, I do recommend my clients wait a few months to take full advantage of the sale of their home.
Equity timing is huge. It can be very beneficial to sell at a point when you have an ideal amount of equity in your home to pay off the current mortgage, cover the closing costs, and have enough for the moving process. This is an important thing to consider so you aren’t overreaching your budget and coming out of pocket. This generally occurs 5+ years after being in the same home, but can vary person to person
Minding your other life events can also come in handy when considering timing. For example, a new job, aging parents, or children needing a better school district are just a few of the reasons a move may be needed and foreseen. If your lifestyle or goals are changing, this can require a downsize or upsize in living arrangements as well. My friends recently had their children graduate college and leave the nest for good(hopefully), and now they’re ready for a smaller property to free up more time so they may embrace their upcoming travel plans.
Finally, understanding the inventory trends is a massive factor in timing your sale. There are always buyers who are motivated to move into an area, and timing your sale with the lowest yearly inventory rate can result in a great offer above market value.
2.) Landscaping
Many people really underestimate the value of perception. For me, curb appeal is one of the most important, controllable factors in selling a piece of real estate or a home for above market value.
Dead, tangled trees and unkempt landscaping can block out the light from flowing into an otherwise beautiful space. Prospective buyers are unable to appreciate value-adding views.
I’ve found from personal experience that a $500 landscaping job can bring a 5x return on the investment. It can really make a significant difference in the price. Nobody likes to spend money, especially when there are so many other considerations during a home sale, but landscaping such as pruning, trimming, tree removal, or simple plant installations can greatly add value in the mind of a prospective buyer. Let’s face it, if your home is a book, it’s definitely being judged by its cover to some extent.
If buyers can’t imagine living somewhere, on many levels including subconscious ones, the desire to purchase simply fades or fades away.
Working with experienced, fair landscaping professionals doesn’t have to break your bank. On the contrary, it can be a smooth experience that nets you a higher selling price.
3.) Basic Care and Maintenance
A lot of people jump straight into fancy upgrades to the kitchen, but I’d like to point out these aren’t where one should start out for adding value to your sale price. What are the current problems in the home? Which fixed are due? What fixtures should be updated? Does the house need a paint job or a new door?
Simpler tasks like insulating the attic, replacing rusted rain gutters, fixing leaky or inoperable windows, and installing storm doors are all tasks that can be recorded and shown to a prospective buyer. These things go a really long way toward adding value, because it shows there’s been work done to the home and can put a buyer more at ease. Starting with a few hundred dollars on these types of repairs has the potential to increase the value of your house by a few thousand dollars. People think they have to put in a big expense to make a difference, but this isn’t always the case.
Another basic care item to me is removal of undesirable and outdated features. That 50’s-era wallpaper or broken step? No need to devalue your home with it. Just get rid of it.
Maintenance and repair investments could be crucial to a sale in some instances. Many brokers, buyers, and agents will tell you that homes in great working order attract a lot of attention, especially when buyers visit multiple homes and keep an eye out for all the little things that add up to a lot. In this market, keeping a house in pristine condition along with these other tips can compound into a higher selling price for you.
4.) Marketing
Point Blank: there’s a right way and a wrong way. If it’s not done the right way, the right buyer isn’t seeing your property. Even if your house is in good shape and well maintained, there could be fewer buyers showing interest if it’s not shown correctly. What channels is it being shown on and are they appropriate for the property? Is the agent showing great pictures of your home? Are they honing in on the right type of buyer for your home who would be willing to pay a premium? To sell your property for the price you’re looking for, the marketing approach needs to be considered. Understanding online marketing can be crucial for selling above market. Take a look at yourself. You’ll see some outshining the others.
Most of all, when you are looking for a higher price than what your house is worth; you need to have a lot of patience. It will take a considerable amount of time and effort, but the wait would be worth it. Sometimes finding the higher price is not a difficult task, and sometimes it can take longer. In any case, you need to stick to your price once decided to be able to get it, even if it takes a long time.
When your house is being shown, marketing the home correctly comes down to staging. For all of my clients, I have a staging checklist. After doing all the above where possible, I look to add fresh plants and flowers, items such as crisp towels and linens, and even a freshly-baked pie to give the warm, cozy home scent.
5.) Patience
If you’re looking to sell your home above market value, it is important to have patience. It takes a considerably larger amount of time and effort on average to net you the above-market price. It may still be the case that price may need to be cut or negotiated down depending on the specifics of each situation.
My goal is to get an offer within the first month depending on the individual home and time of the year. With a strong strategy and marketing, it’s more than just possible.
Once on the market, it’s vital to pay attention to what’s happening and constantly reevaluate the plan. This is not an exact science, but being as well-informed and organized as possible with your listing can yield the much coveted result of selling a home for higher than market value.
Contact me today for a free consultation on your home and let’s see if I can sell your home for above market.
https://brockharrishomes.com/contact/