Top 7 Tips To
Attract the Best Offers for Your Home
Not long ago, home sellers were in their
heyday, as historically-low mortgage rates triggered a real estate buying
frenzy. However, the Federal Reserve shut down the party when it began raising
interest rates last year.1
Now, it’s not as simple to sell a home. While
pandemic-era homebuyers were racing the clock—trying to lock in a low mortgage
rate and gain a foothold in the market—current buyers are more discerning.
Higher prices and mortgage rates have pushed their limits of affordability,
leading them to prioritize cost, condition, and overall value.2
The reality is, home inventory remains low, so
most properties will still sell with some basic prep, the right price, and a
good real estate agent. But owners who go the extra mile are more likely to
sell faster and for a higher amount.
If you have plans to sell your home and want
to net the most money possible, this list is for you. Here are our top seven
strategies to attract the best offers and maximize your real estate returns.
UNDERGO A PRE-LISTING INSPECTION
Many homebuyers hire a professional to
complete a home inspection before they close. But did you know that a seller
can order their own inspection, known as a pre-listing inspection, before they
put their home on the market?
Having a pre-listing inspection on hand and
ready to share shows interested buyers that you’re committed to a transparent
transaction. This can help you market your home, strengthen your negotiating
position, and minimize roadblocks to closing.3
Of course, it’s always possible that a
pre-listing inspection—which looks at the home’s major systems and structures,
among other things—could turn up a significant problem. This does carry some
risk, as you’ll be required to either fix or disclose any issues to potential
buyers. However, in most cases, it’s better to know about and address
deficiencies upfront than to find out mid-transaction, when it could cost you
more in the form of concessions, a delayed closing, or a canceled sale.
We can help you decide if a pre-listing
inspection is right for you. And if it identifies any concerns, we can advise
on which items need attention before you list your home.
CONSIDER STRATEGIC UPGRADES
Embarking on major renovations before putting
your home on the market doesn’t always make financial (or logistical) sense.
However, certain upgrades are more likely to pay off and can help elevate your
home in the eyes of buyers.
For example, refinishing hardwood floors
results in an average 147% return on investment at resale and new garage doors
typically pay for themselves.4 Similarly,
research shows that professional landscaping can boost a home’s value by as
much as 20%.5
Often, even simpler and less expensive fixes
can make a big difference in how your home comes across to buyers. A fresh coat
of paint in a neutral color, modern light fixtures and hardware, and new caulk
around the tub or shower can help your property look its best.5
But before you make any changes to your home,
reach out. We know what buyers in your neighborhood are looking for and can
help you decide if a particular investment is worthwhile.
HIRE A HOME STAGER
To get standout offers, you need potential
buyers to fall in love with your home—and they’re much more likely to do so if
they can envision themselves in the space.
That’s where home staging comes in. Staging
can include everything from decluttering and packing away personal items to
bringing in neutral furniture and accessories for showings and open houses.
According to the National Association of
Realtors, home staging can both increase the dollar value of home offers and
help a property sell faster. In fact, 53% of seller’s agents agree that staging
decreases the amount of time a home spends on the market, and 44% of buyer’s
agents see higher offers for staged homes.6
There’s plenty of strategy and research behind
the process, so it’s smart to consider a professional. Reach out for a
connection to one of our recommended home stagers who can help your property
show its full potential.
EMPLOY A COMPETITIVE PRICING STRATEGY
While it’s tempting to list your property at
the highest possible price, that approach can backfire. Homes that are
overpriced tend to sit on the market, which can drive away potential buyers—and
drive down offers.7
Alternatively, if you price your home
competitively, which is either at or slightly below market value, it can be
among the nicest that buyers see within their budgets. This can ultimately lead
to a higher sales price and fewer concessions.
To help you list at the right price, we will
do a comparative market analysis, or CMA. This integral piece of research will
help us determine an ideal listing price based on the amount that comparable
properties have recently sold for in your neighborhood.
Without this data, you risk pricing your home
too high (and getting no offers) or too low (and leaving money on the table).
Combined with our local market insights, we’ll help you find that sweet spot
that will attract the best offers while maximizing your profit margin.
OFFER BUYER INCENTIVES
Sometimes, sweetening the deal with buyer
incentives can help you get the best possible offer. Incentives are especially
helpful in the current market, when many buyers are struggling with
affordability and concerned about their monthly payments.
Options that can pay off include:
?Buying down their interest rate – You can pay an upfront sum to reduce the buyer’s mortgage rate. This approach can save far more than that cost over the life of the loan, meaning it’s worth more to the buyer than a simple price reduction.8
?Offering closing cost credits – You might pay a set amount or a certain percentage of the buyer’s closing costs.
?Paying HOA costs – You could cover homeowner association or condominium fees for a set period of time.
?Including furniture or appliances in the sale – If your buyer is interested, throwing in the furniture or appliances that they want and need can make your property more appealing.
Buyer incentives vary and valuing them can get
complicated. We’re happy to talk through the options that might make sense for
you.
USE A PROVEN PROPERTY MARKETING PLAN
Gone are the days when it was enough to put a
“for sale” sign in your yard and place a listing on the MLS. A strategic
marketing plan is now essential to get your home in front of as many interested
and qualified buyers as possible.
The truth is, buyers who don’t know about your
house can’t make an offer. That’s why we utilize a multi-step approach to
marketing that starts with identifying your target audience, effectively
positioning your home in the market, and communicating its unique value. We
then use a variety of distribution channels to connect with potential buyers
and performance-based metrics to monitor and improve our campaign results.
Our proven approach can have a big impact on
the success of your sale. Reach out to learn more about our multi-step
marketing plan and discuss how we can use it to generate interest and offers
for your home.
WORK WITH AN AGENT WHO UNDERSTANDS YOUR AREA
To get the best offers possible, you need a
real estate agent who knows your area inside and out.
Any agent can pull comparable sales data, but
in a quickly-evolving market, even the latest comps can lag the current market
reality. We have our fingers on the pulse of the local market because we’re
working directly with sellers like you. We also represent local buyers who are
active in the market, searching for homes like yours.
That puts us in an ideal position to help you
price your home for a quick sale and maximum profit. And since we hear
first-hand what local buyers want, we can help you prep your home to broaden
its appeal and highlight its most-coveted features. Additionally, we can use
our extensive network of local agents to solicit feedback and get your home in
front of more potential buyers.
All of these factors can add up to a
significant difference in your profit: In 2021, the typical home sold by owner
went for $225,000 compared to a median price of $330,000 for agent-assisted
home sales.9
LET’S
GET MOVING
Are you ready to get a great offer for your
home? Our multifaceted approach can help you maximize your real estate returns.
Reach out for a free home value assessment and customized sales plan to get
started!
The above references an opinion and is
for informational purposes only. It is
not intended to be financial, legal, or tax advice. Consult the appropriate
professionals for advice regarding your individual needs.
Sources:
U.S. Bank -
https://www.usbank.com/investing/financial-perspectives/investing-insights/interest-rates-impact-on-housing-market.html
National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf
Bankrate -
https://www.bankrate.com/real-estate/prelisting-inspection/
National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf
Bankrate -
https://www.bankrate.com/homeownership/landscaping-increase-home-value/
National Association of Realtors -
https://www.nar.realtor/infographics/staged-for-success
The Balance -
https://www.thebalancemoney.com/looking-twice-at-overpriced-homes-1798671
U.S. News & World Report -
https://money.usnews.com/loans/mortgages/articles/a-guide-to-seller-paid-mortgage-rate-buydowns
National Association of Realtors -
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics