What Is Sale Price Margin and How Do You Maximize It?
When you sell your home there is a margin for what the house will sell for. For example, say a beautiful two bedroom, one bath home in Hale off Minnehaha Parkway goes on the market for $200,000. A lot of buyers like it, lots of offers come in. The seller gets 6 offers. They range in price between $200,000-$225,000. So the sales price margin on this house at this particular time is $25,000 because a buyer is willing to pay $200,000, that is the minimum price set by the market. The most somebody will pay is $225,000.
How do you get that final buyer up to $225,000? What makes the difference between getting an offer for $217,000, $210,000, or $225,000?
1. You have to price it right. You want to price it low enough to attract attention, but you dont want to price it too low so you cant get the price up higher.
2. You have to market the home to the best extent possible. This is probably the hardest part of selling your home. The marketing message can shape how the market judges or perceives your home on first impression. It can set the tone for how many people show up, make offers, and ultimately how high the offers go. Honestly, if the right person doesnt even know about the house you might not even get an offer or you might have to sell it for $10,000 less. I sold a house this year once because I was touring homes in the neighborhood, went through one that had been on the market for a while, thought of my clients as I went through it, brought them back and they made a offer and it got accepted. What if I didn't go through that home? Would my clients have even went through it? Would it have even sold?
3. You have to be able to negotiate well. Buying a home is a very emotional process for most people. Buyers and sellers can get upset, excited, anxious, impatient. Any of those emotions can help or hurt you in negotiating. They can literally make or break a deal. Honestly, responding the wrong way could cost you thousands. The best way I have found to negotiate is to remain calm. Care enough about the outcome that you try, but you dont want to care too much that it ends up hurting you.