Any time you prepare to sell a home, there’s inevitably a number in mind — a dollar amount you’d like to receive in exchange for the property. Alas, things don’t always work out that way. In fact, one analysis reveals that, in 2018, more than 60% of all home listings undersold — or in other words, they ended up going for much less than the asking price. The same research indicates that in 2019, even more homes will undersell, as many as 75%.
Why are homes underselling?
For one thing, list prices have steadily been rising, above the point of what the homes are realistically worth. Not surprisingly, homes that undersell tend to be priced way above their original listing price.
The advent of the iBuyer is also contributing to this trend. IBuyers are basically investors who purchase a home in any condition, often sight unseen, and promise to close within mere days — all of which can be enticing to sellers. The downside, though, is that iBuyers often offer a take-it-or-leave-it dollar amount that is well below the home’s value. This is an increasingly popular option for some sellers, particularly those who favor convenience and speed over value. As this method for home selling gains market share, it may skew some of the statistics about how much homes are selling for.
How To Get Your Asking Price
This insight into the real estate market may seem daunting to homeowners who are ready to sell today, but it’s not meant to suggest that you can’t sell your home for a reasonable amount. Here are some selling tips to keep in mind:
• Do your due diligence. Being aware of market indicators, professionals in the area and the many options for selling a home based on specific preferences is key to maximizing the value of a home during the sales process. Various resources can provide insight based on all of these things to help put you on the right path and then guide you through the process.
• Remember that pricing is critical. To sell a home quickly, and for asking price, make sure that asking price is reasonable. This can be determined by doing research around specific markets and neighborhoods where the sale is taking place and making sure the asking price is in the same ballpark. Many homeowners turn to popular real estate sites like Zillow to get an automated valuation of their home. Keep in mind that homebuyers will also reference this ballpark, so use multiple resources to obtain multiple estimated, machine-driven valuations for your home.
• Take some time to make needed repairs. This makes even older homes more enticing to buyers. Bathrooms and kitchens are often a great — and necessary — place to start.
• Do some staging. Declutter your home, move unneeded items to storage and maximize the spaciousness of the property. This will help prospective buyers to better envision themselves in the home and increase their odds of making an offer.
Perhaps most importantly, think carefully about your goals in order to choose the best option for selling a home. For example, to minimize selling commissions or fees, selling with a discount agent or a flat-fee agent instead of a full-service real estate company may be the right move. By the same token, if time is of the essence, selling to an iBuyer may be the optimal route.
Simply put, while trends around home sales falling below asking price are important to pay attention to, it doesn’t mean now is not a good time to sell a home. The method by which you choose to sell your home and the steps you take to prepare your home for the market can make a significant difference in obtaining your asking price.