Selling Real Estate For The Highest Price
Points on selling for the highest price
1. Pick The Best Agent
A good agent will have the biggest impact on your sale price.
A good real estate agent acts on behalf of sellers to any potential buyers interested in their property.
This role is essentially about negotiating a deal so that both the sellers and the buyers can have their needs met
Negotiating a deal so that both the sellers and the buyers are happy can be tricky and it is not as easy as it sounds.
When you are selling you want a real estate agent that knows and understands the principles of negotiation.
A good real estate agent is the key to selling your real estate for the highest price and the quick definition of a good real estate agent is an expert at negotiation.
2. How Much Difference Will The Agent Make To The Sale Price ?
Consider the difference in sale price in terms of percentages.
For example : If the sale is handled 100% correctly you have the best situation where you would then be getting your properties true market value.
But what if the sale was handled well but some errors were made in marketing or negotiations ?
What does that type of result translate to in terms of the amount of money that you will have to put into your bank account after your sale is completed?
The property sold reasonably quickly, and you felt that everything went about 95% correct, or that the marketing and negotiation went about 90% right.
That doesn't sound much different does it?
What does that actually mean in monetary terms?
The average sale price for a residential property in Australia is around $570,000, so if the sale was done 95% right we can estimate that you could have possibly got another 5% on your sale price or $28,500.
Or if the sale was handled in a manner that was judged to be only 90% correct you could be looking at a raw loss of approximately $57,000.
These are the types of figures you have to consider when chosing who to sell with.
It pays to research this decision to get it right, and for those thinking of selling real estate privately is it worth taking the gamble without an agent.
3. Finding The Best Real Estate Agent is The Real Challenge
All agents will tell you they are the best so you need to do your own homework before making your decision.
A good agent will cover the cost of their selling commission easily, because they will create the conditions so your real estate sells for the highest price.
This is different to the uncertain outcome of those who try to sell the property privately.
A guide to private sales would be if your attempts at selling privately don't create a buyer in first 2 weeks you should go with an agent.
So even if you try private selling have a fall back plan to employ your area specialist agent, after the 2 week experiment.
Type in your suburb at the bottom of this page to see if we have any recommended agents for your area.
4. Use a Local Real Estate Agent and Get a Higher Price
Real estate agent trainers teach agents they can provide better service and be more effective as agents when they specialize on one target area.
The properties sold by outside area agents normally sell but it is debate able if they are really selling for the highest price.
The debate could be about the agents pricing of the property.
Most real estate agents value property based on what other comparable properties have sold for recently.
This is always the main guide when considering a properties market value, but there are many other factors.
A big one that an agent from outside of the area will not be as well equipped to include in their considerations is the current buyer demand for this neighborhood.
A good local agent can factor in current buyer demand for the area better than an agent from outside of the area.
An agent from outside of the area is not truly aware of the local state of buyer demand because it can and does change very quickly.
Buyer demand can be very area specific.
It can and in fact is often street specific.
For example a local agent can have buyers in their database that will say if they could find a property in this particular street or that particular street they would buy it in a heartbeat.
This type of buyer is the best type of buyer that you can get because they have a specific area they want and will often pay top market price to buy in that area.
An agent from outside of the area may not be aware of these buyers and they don't factor it into their pricing.
Instead they price the property based on what other comparable properties have already sold for.
A local agent is better because : They can judge on a week to week basis the number of people who buy in that area and the people at their open homes who say we really want to buy real estate in this suburb.
The challenge for many of these local agent is just to finding property owners who want to sell.
They have plenty of buyer demand.
It is something a real estate agent from outside of the area does may not factor in as acurately, as they are not as aware of current buyer demand so this is why some agents undervalue property.
Property prices are fluctuating all the time but if you deal with a good local real estate agent who is really on top of current market and buyer demand it will help you to sell for the highest price.
5. Make The Right Choice on Marketing Strategy
How are the majority of properties in your area sold, this should be your guide.
If by auction then most serious buyers in your area will be comfortable with the auction process and as a seller you should get comfortable with it too.
If you are confident there will be extremely high demand for your property and you are almost guaranteed there will be more than one party interested in bidding for it, auction may be the way to market.
Offered by negotiation
This means is you see an agent advertise a property offered for sale by negotiation between two figures a higher and lower amount...for example offers between $550,000 to $600,000.
Be careful using this negotiating technique, because you are advertising to buyers what your lowest expectations for the sale are.
What buyer in their right mind would start negotiations or submit an offer above $550,000 in the above scenario.
Most buyers probably don't really like this type of marketing either because most would rather have a clear understanding of what they have to pay.
It makes no sense to start negotiations at your lowest expectation for the sale.
What ever your choice on marketing strategy you want the agent to explain and demonstrate why it is the best choice.
When they can can prove to you and give local examples of it resulting in a higher real estate selling price, only then consider if it is right for you.