Top 7 tips to attract the best offers

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Real Estate

 

7 Proven Strategies for Attracting the Best Offers on Your Home

In the recent past, home sellers enjoyed a flourishing market thanks to historically low mortgage rates, which led to a frenzied real estate buying spree. However, the party took a hit when the Federal Reserve began raising interest rates last year.1

Selling a home today is no longer a straightforward affair. Unlike pandemic-era buyers who rushed to secure low mortgage rates and establish a presence in the market, current buyers are more discerning. Elevated prices and mortgage rates have stretched their affordability limits, causing them to prioritize factors such as cost, condition, and overall value.2

The fact remains that home inventory is still limited, so most properties will sell with the basics: proper preparation, the right pricing, and a skilled real estate agent. Yet, homeowners who go the extra mile stand a better chance of selling quickly and at a higher price.

If you're considering selling your home and want to maximize your returns, this list is tailor-made for you. Here are our top seven strategies for attracting the best offers and optimizing your real estate profits.

 

1. Invest in a Pre-Listing Inspection

Many homebuyers hire professionals to conduct a home inspection before closing the deal. However, did you know that sellers can order their own inspection, known as a pre-listing inspection, before putting their home on the market?

Having a pre-listing inspection ready to share signals to potential buyers that you're committed to transparency. This can boost your home's marketability, enhance your negotiation stance, and minimize obstacles to closing.3

Admittedly, a pre-listing inspection, which scrutinizes the home's major systems and structures, might reveal significant issues. This does entail some risk, as you'll need to either rectify or disclose any problems to potential buyers. Nevertheless, in most instances, it's wiser to discover and address deficiencies upfront, rather than mid-transaction when it could cost you more in concessions, delayed closing, or a canceled sale.

 

2. Consider Strategic Home Upgrades

Undertaking major renovations before listing your home doesn't always make sense financially or logistically. However, certain upgrades are more likely to yield returns and can elevate your home's appeal to buyers.

For instance, refinishing hardwood floors typically provides a 147% return on investment at resale, and new garage doors often pay for themselves.4 Similarly, studies indicate that professional landscaping can increase a home's value by up to 20%.5

Frequently, even simpler and less costly improvements can significantly improve your home's presentation. A fresh coat of paint in a neutral color, modern light fixtures and hardware, and new caulk around the tub or shower can help your property shine.5

But before making any changes, reach out to us. We're familiar with what buyers in your neighborhood are seeking and can help you determine which investments are worthwhile.

 


3. Engage a Professional Home Stager

To attract standout offers, you need potential buyers to envision themselves living in your home. Home staging plays a crucial role in achieving this. Staging may involve decluttering, storing personal items, and bringing in neutral furniture and accessories for showings and open houses.

According to the National Association of Realtors, home staging can increase the dollar value of offers and expedite a property's sale. In fact, 53% of seller's agents believe staging reduces a home's time on the market, and 44% of buyer's agents report higher offers for staged homes.6

Given the strategic and research-based nature of the process, it's wise to consider hiring a professional home stager. Get in touch with us for a recommendation to one of our trusted home staging experts who can help your property realize its full potential.

 

4. Adopt a Competitive Pricing Strategy

While listing your property at the highest possible price might be tempting, it can backfire. Overpriced homes often languish on the market, discouraging potential buyers and leading to lower offers.7

Conversely, pricing your home competitively, at or just below market value, positions it as one of the most attractive options within buyers' budgets. This can ultimately result in a higher sale price and fewer concessions.

To determine the right price, we'll conduct a Comparative Market Analysis (CMA). This crucial research will help us establish an ideal listing price based on recent sales prices of comparable properties in your area.

Without this data, you risk either overpricing your home (resulting in no offers) or underpricing it (leaving money on the table). With our local market insights, we'll help you find the sweet spot that attracts the best offers while maximizing your profit.

 

5. Offer Buyer Incentives

In the current market, where many buyers grapple with affordability concerns and monthly payment anxieties, sweetening the deal with buyer incentives can lead to stronger offers. Options that can pay off include:

Buying down the buyer's interest rate: You can pay an upfront sum to reduce the buyer's mortgage rate, which can result in substantial savings over the life of the loan, making it more valuable to the buyer than a simple price reduction.8
Providing closing cost credits: You might cover a set amount or a percentage of the buyer's closing costs.
Covering HOA costs: You could handle homeowner association or condominium fees for a specific period.
Including furniture or appliances in the sale: If the buyer is interested, including desired furniture or appliances can make your property more appealing.
Valuing buyer incentives can be complex, and the options vary. We're here to discuss which incentives might make sense for your situation.

 


6. Implement a Proven Property Marketing Plan

Gone are the days when sticking a "for sale" sign in your yard and listing on the MLS sufficed. Today, a well-thought-out marketing plan is essential to expose your home to as many interested and qualified buyers as possible.

The truth is, buyers who are unaware of your property can't make offers. That's why we employ a multi-step marketing approach that begins with identifying your target audience, positioning your home effectively in the market, and conveying its unique value. We then utilize a range of distribution channels to connect with potential buyers and employ performance-based metrics to monitor and enhance our campaign's results.

Our proven approach can significantly impact the success of your sale. Contact us to learn more about our multi-step marketing plan and discuss how we can use it to generate interest and offers for your home.

 


7. Collaborate with a Local Expert

To secure the best offers, you need a real estate agent who possesses in-depth knowledge of your area.

While any agent can retrieve comparable sales data, in a rapidly evolving market, even the latest comps may lag behind the current market reality. We stay connected to the local market by working directly with sellers like you and representing local buyers actively searching for homes like yours.

This places us in a prime position to help you price your home for a swift sale and maximum profit. Plus, since we hear firsthand what local buyers desire, we can guide you in preparing your home to broaden its appeal and highlight its most sought-after features. Additionally, we can leverage our extensive network of local agents to solicit feedback and increase your property's exposure to potential buyers.

These factors can make a substantial difference in your profit: In 2021, owner-sold homes typically fetched $225,000 compared to a median price of $330,000 for agent-assisted home sales.9
Ready to Secure a Great Offer?

Are you eager to receive an excellent offer for your home? Our comprehensive approach is designed to help you maximize your real estate returns. Reach out to us for a complimentary home value assessment and a customized sales plan to kickstart the process.

The content provided above is for informational purposes only and represents an opinion. It is not intended to offer financial, legal, or tax advice. Please consult with the appropriate professionals to address your specific needs."
 

The above references an opinion and is for informational purposes only.  It is not intended to be financial, legal, or tax advice. Consult the appropriate professionals for advice regarding your individual needs.

 

Sources:

1.     U.S. Bank - 
https://www.usbank.com/investing/financial-perspectives/investing-insights/interest-rates-impact-on-housing-market.html

2.     National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf

3.     Bankrate -
https://www.bankrate.com/real-estate/prelisting-inspection/

4.     National Association of Realtors -
https://www.nar.realtor/sites/default/files/documents/2022-remodeling-impact-report-04-19-2022.pdf

5.     Bankrate -
https://www.bankrate.com/homeownership/landscaping-increase-home-value/

6.     National Association of Realtors -
https://www.nar.realtor/infographics/staged-for-success 

7.     The Balance -
https://www.thebalancemoney.com/looking-twice-at-overpriced-homes-1798671

8.     U.S. News & World Report -
https://money.usnews.com/loans/mortgages/articles/a-guide-to-seller-paid-mortgage-rate-buydowns

National Association of Realtors -
https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics