Asking Price vs. Selling Price - Part Two
In the current market, on average, a home generally sells for $4,000 - $10,000 less than the asking price. What does that mean for you as a buyer? Or seller?
As a Seller:
1) Price it to sell: You want buyers bidding you up, not negotiating you down. The most foolproof way to stay out of chasing the market downward with price decreases and negotiations, is to list your home at the right price. What’s the right price? Get with an experienced Realtor to help you set the right price for your home. If you don’t have a Realtor, call me for a free Home Evaluation and I will tell you what the right price is. And once you get that price, run with it. You’ll just have to show a little trust in us. I can’t tell you how many times I’ve recommended my buyers to come in at asking price or slightly higher because I knew the home was priced right, and I didn’t want my client to lose it due to unnecessary negotiations.
2) Prepare for the inevitable. On the flip side, it doesn’t matter if you’re selling a car or a glass of lemonade on the corner, people are always looking for the deal. Even if you are priced right, you can expect that someone is still going to ask you to come down, so they can feel like they’ve made a great buying decision. Buyer’s constantly need to be reassured that they are making the right decision, over and over, throughout the transaction. Why do you care? Well, the real estate transaction is such that there are multiple ways buyers can back out of a deal if things are not going in their favor, and we don’t want that.
So, you want to reassure them every step of the way, by being flexible on the things you can be flexible on. Getting a new washer and dryer at your next home? Leave the existing one to sweeten the pot. Can’t transport that she-shed? It stays! And if you have to give a little on the price, if you started out priced right, it should only be a small dip and not a Niagara fall.
3) Know your net sheet and know your market. I’m basically saying, know how low you can go. Is this the right time for you to sell, or should you wait for a better time? What is that amount that you must clear and is there enough equity in your home and the right activity in the market to be able to get it done? If yes, then this is the time to sell. If timed correctly, the few thousand dollars that you might give to a buyer to help them buy your home will not break the bank. If it will, then we have to evaluate why you’re selling right now.
Typically, you will have more equity in your home than a buyer will have saved up for a down payment. So, if the question is, ‘why do I have to give up any amount of money?’ that’s generally the reason. And if you don’t want to give a dime, you’ll just have to wait for the right market, it’ll come around.