The Downside of Selling Your Home for Above Asking Price

Here’s a question: if your home was on the market and ended up selling for OVER list price, that would be a good thing, right? If you answered yes, you’re not alone.

The more accurate answer is that a home selling for over ask could be good or bad news – on the surface, it appears good that you got more money than you anticipated, but in reality, it is more likely bad in that you may have priced the home too low and lost out on thousands of dollars because you didn’t know the true value.

For decades, a Comparative Market Analysis, or CMA, has been the most widely used method real estate agents rely on to determine a home’s listing price. Problem is, while a CMA may give you a number, it doesn’t go into the depth of detail needed to determine the home’s valuation. It’s like trying to use a set of binoculars as a microscope.

Know Your Home’s True Value Before It Goes On the Market

Maxavenue’s Price Adjusted CMA (PACMA) goes beyond traditional techniques and uses state of the art pricing methodology to accurately determine a home’s price elasticity. And just recently, it helped me avoid making a $50,000 mistake.

I had an upcoming listing on Harris Park Avenue in Hyde Park, and, based on the other homes on the market, I felt fairly confident in a $1.1 million list price. The Hyde Park area is in high demand, and out of the 20 homes that have sold in the last 90 days, 9 have sold for over list price. How could we lose, right?

Knowing that getting more specific knowledge was the best move to make to take care of my clients, I engaged with Maxavenue’s Team of Experts to take a deeper dive and think together on how to best price this home. The Team ran a PACMA (price adjusted comparative market analysis) which uncovered some surprising information: because the area had such a wide variety of home styles and states of improvement, the analysis was way more complicated than originally thought. In the end, the Team and I discussed the PACMA in depth and together concluded that the list price should be $1.15 million – $50,000 more than the initial calculation. In addition, the valuable information gathered during this process can be turned into an Appraiser’s Package – which I’ve used at other successful listings – to provide support for the higher sale price.

There’s No Fixed Price for a Home – What Hurts a Sale and What Helps

In order to make sure the home was in top condition before it hit the market, I had my clients get a pre-inspection, which helps identify and repair any hidden issues before they’re detected during the buyer’s inspection. Without a pre-inspection, you could end up spending 25% – 100% more for rushed repairs before closing, or even worse – lose buyer confidence in the home. The inspection on Harris Park Ave. uncovered a previously unseen roof issue which the homeowners repaired and eliminated before it reached the negotiating table.

The Maxavenue Team also researched and developed an in-depth profile of the persona most likely to be attracted to the home and be willing to pay top dollar for it. From that report, we were able to target the marketing copy to that persona and really make the listing stand out from all the rest.

The results of the Team’s and my hard work? The home sold quickly after it hit the market for full list price – and to a buyer that was exactly like the persona report!

By flawlessly executing Maxavenue’s home selling system, we were able to proactively manage the property marketing variables to increase the perceived value of the home to the right target audience and earn the sellers an additional $50K.

Your home is your most valuable asset. When you decide to sell, make sure it’s in the hands of a Maxavenue professional who can use the proper tools and services to get you the maximum potential value.

Don’t let a traditional real estate agent sell your home for “As-Is” value. To get your FREE Maximum Potential Value Analysis of your home go to bit.ly/Maximum-Potential.


Author:
Debbie Trominski
Realtor, Broker Associate
512.293.5380