When it comes to selling your home, everybody wants to get top dollar but obviously that comes with a few things. Something that must be understood is Price Vs. Value. The home has a price that is determined by recent sales in the area of similar homes. Then there is value which is determined by the buyer and seller of the home as well as the amenities in the area. Value is different for each potential buyer - what may be a positive contributing factor for one individual could actually be a detractor for someone else.
One of the best ways to get the top value for your property is to take care of the house itself. A lot of times, people will know that there are repairs that need to be done to the property but they are reluctant to actually do the work because they don’t want to part with the money to get it done. Unfortunately, by doing this they also lessen what they can ask for with regards to property price – because that is work that going to have to be done by someone sooner or later. Also if it is indicated on the appraisal that the work will be have to be done before the appraised value can be given then the seller is going to have to get the work done to make the deal work.
Another way to get top value for the property is to make upgrades. If the house is dated internally or externally that may deter certain clientele because that, to them, is seen as another expenditure that they will have to put in to the property. When that happens borrowers typically try to renegotiate the price of the home to accommodate that future costs that they will incur with having to make those upgrades themselves. Some upgrades add more to a property than others. One example of that is the kitchen - which is one of the most highly used and trafficked areas in the home. So understandable, the upgrades made to that area of the home hold the most value in terms of repairs.
Sometimes a seller will list a property at top dollar with the intent of getting top dollar, but it may work against them. An example of this is when a home is listed and then sits on the market for an extended period of time. Usually the next course of action is the listing price being reduced. Had the home been listed at market value, it could lead to a bidding war for the property which would ultimately drive the price of the property up. To paint the picture imagine that there is only 1 apple and there are 15 hungry people. If the apple is being sold, at its cheapest point, for $10 how many people are going to be willing to outright pay $10 for it initially? By the same token if that same apple was listed for $1, the mere lack of supply will drive the people to want to pay more than the other person to ensure that they get the apple. If everyone bids a dollar more than the next person, by the time we get to person number 15 the apple is now being sold at $15 not the $10 price they tried to sell it for.
Remember that it is always best to present your house in its best form, so take the time to do the repairs, make the upgrades, and don’t overprice it at listing!