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Closing Costs for Sellers: Common Fees Associated With Selling Your Home

September 14, 2019

closing cost for sellers

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If you’re monitoring the value of your home so you can sell it and reap a worthwhile profit, don’t forget to factor in the closing costs for sellers into the sale price.

You may be estimating that your sale price could be $350,000, which could pay off your $200,000 home loan and reap you a $150,000 profit. But before you start counting your dollars and debating the size of the down payment for your next home, you need to calculate the closing costs for the seller.

While buyers also pay closing costs (here’s more info on typical closing costs for buyers), you’ll see a long column on the HUD-1 Settlement Statement for seller closing costs.

Closing costs for sellers of real estate vary according to where you live, but as the seller you can expect to pay anywhere from 6% to 10% of the home’s sales price in closing costs at settlement. This won’t be cash out of the seller’s pocket; rather it will be deducted from the profit on your home—unless you are selling with very low equity on your mortgage. In this case, sellers may need to bring a little cash to the table to satisfy your lender—and some closing costs may be held in escrow.

1. Seller costs

One of the larger closing costs for sellers at settlement is the commission for the real estate agents involved in the real estate transaction.

Commissions on real estate are negotiable and vary somewhat by market, but a typical commission is 6% of the sales price of the home split between the listing real estate agent and the buyer’s agent.

For a $350,000 purchase price, the real estate agent’s commission would come to $21,000. Buyers have the advantage of relying on sellers to pay real estate agent commissions.

2. Loan payoff costs

Most home sellers often seek out a sales price for their home that will pay off their mortgage and satisfy their lenders.

Your mortgage payoff balance will often be a little higher than the remaining balance on your mortgage and even the buyer’s purchase price. This is because of lenders’ prorated interest on the mortgage.

In some cases, your lender may require you to pay a prepayment penalty for paying off your mortgage loan before the end of the term. If you have a home equity loan or line of credit, in addition to your mortgage, the lender will require this be paid in full at settlement as part of closing costs for the seller.

Be sure to talk to your lender about what will be required to pay off the mortgage so that you get an accurate picture of closing costs.

3. Transfer taxes or recording fees

Transfer taxes, recording fees, and property taxes are key parts of a seller’s closing costs.

Transfer taxes are the taxes imposed by your state or local government to transfer the title from the seller to the buyer. Transfer taxes are part of the closing costs for sellers.

Along with transfer taxes and transfer feeds, property taxes must also be up to date for sellers before they hand over keys to the buyer.

4. Title insurance fees

Title insurance fees are another fee to keep in mind when you sell real estate. As part of closing costs, sellers typically pay the buyer’s title insurance premium. Title insurance protects buyers and lenders in case there are problems with the title in a real estate deal.

5. Attorney fees

If you have your own attorney represent you at the settlement of your real estate sale, the seller may have to pay attorney fees as part of closing costs.

Market traditions vary, so while in some areas both the buyers and sellers have their own attorneys, in others it’s more common to have one settlement attorney for the real estate transaction. In some areas the buyer pays the attorney fees, while in others the seller pays.

Additional closing costs for sellers

Additional closing costs for sellers of real estate include liens or judgments against the property; unpaid homeowners association dues; prorated property taxes; escrow fees; and homeowners association dues included up to the settlement date. These closing costs for a home sale are separate from what buyers pay at closing.

Depending on the real estate contract, closing costs may also include termite inspection and remediation, if necessary; home warranty premium for buyers; and repair bills or a credit to buyers for repairs for items found during a home inspection.

Also, don’t forget to estimate some of the closing costs associated with preparing to sell, such as cosmetic repairs or improvements to make your home more attractive to buyers. Those closing costs may be returned with a higher sales price, but you should still include them in your calculations.

The post Closing Costs for Sellers: Common Fees Associated With Selling Your Home appeared first on Real Estate News & Insights | realtor.com®.

When Is the Best Time to Sell Your House? 5 Factors to Consider

May 8, 2019

When is the best time to sell your house?

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When is the best time to sell your house? Timing can make a big difference in terms of selling your home quickly and for the most cash. But here’s the thing: The rules on pinpointing that best time might not be what you think.

The assumption that spring is always the best time to sell is not necessarily true. The general direction of your local economy and mortgage interest rates come into play as well.

There’s no crystal ball for reading the housing market, but there are ways to stack the deck in your favor. Here are five things to consider before putting your house on the market.

1. Spring isn’t always the best season to sell your house

Though conventional wisdom maintains that the spring home-buying season (April to June) is the best time to sell, that’s not always the case. In fact, one recent study even found that sellers typically net more above asking price during the months of December, January, February, and March than they do from June through November. Surprised?

One reason may be that the spring home-buying season generally means you’ll have more competition from other home sellers—and that may require you to price your home more aggressively in order to attract buyers.

“Listing in the spring means you are positioning yourself to compete with several other homes,” says Jersey City, NJ–based real estate agent Cheyanne Banks. “So as a seller in the spring, you have to price and market your home flawlessly to show buyers that your home is more desirable than the place next door.”

Additionally, a number of experts recommend listing a home in February or March so that the property hits the market before the competition ramps up—which may explain why a 2018 study by ATTOM Data Solutions of 14.7 million home sales from 2011 to 2017 found the second-best day of the year to sell a home is Feb. 15, with sellers netting an average premium of 9% above their house’s estimated market value on that day. (Sellers nab a 9.1% premium above market value on June 28.)

Winter is also a hot time of year for people relocating for jobs, says Jennifer Baldinger, a real estate broker in Scarsdale, NY.

“One of the biggest months for corporate relocation is January-February, so those buyers who need to move quickly are out in full force looking for new homes,” she says.

2. Keep an eye on the local economy

The strength of the U.S. housing market as a whole certainly plays a role in home prices. According to a realtor.com analysis of annual price growth rates, a home’s value generally increases 3% to 4% a year when the economy is strong, driven by inflation and natural population growth. From 2011 to 2016, the national housing market was recovering from the bubble at a slightly higher speed: 6.3% a year, on average.

You’ll want to assess your local economy’s conditions when figuring out when to list your home. One benchmark you can use is the S&P CoreLogic Case-Shiller National Home Price Index, which monitors single-family home sales in 20 major U.S. cities. Another valuable resource is the Metropolitan Median Area Prices and Affordability tracker from the National Association of Realtors®.

3. Mortgage rates matter, too

Generally, more people buy homes when mortgage rates drop, historic data shows. As a result, prospective sellers should be monitoring the mortgage market, says Jack Guttentag, author of “The Mortgage Encyclopedia.”

Need help keeping an eye on interest rates? Realtor.com has a mortgage rate trends tracker, which lets you follow interest rate changes in your local market.

4. Wait until your home’s in good shape

To fetch top dollar for your home, the property must show well. This may require you take time to make repairs to your house.

“Any defect or condition that affects the intended function or operation of a major house system should be fixed,” says Kathleen Kuhn, president of HouseMaster, a national chain of home inspection offices.

Translation: Taking care of leaks, built-in appliances not functioning properly, insect infestations, plus any imminent safety or environmental hazards, is crucial before listing your home. Even making cosmetic changes (e.g., repainting the kitchen or sprucing up the property’s landscaping) can make your home significantly more appealing to home buyers.

Keeping up with your neighbors is also important. If all the houses on your block are beautifully furnished and landscaped, then it’s likely worth it to spend the extra cash—and the time—primping your own home for sale.

5. Your personal preparedness is a priority, too

Yet no amount of timing should eclipse what time is right for you—personally, professionally, and otherwise. Are you ready to move on, or up into bigger digs? Many homeowners sell when they change jobs or when their children switch schools, or when the kids fly the coop and the parents are ready to downsize. So, take stock of your own situation when deciding whether to put your house on the market now or wait.

Michele Lerner contributed to this article.

The post When Is the Best Time to Sell Your House? 5 Factors to Consider appeared first on Real Estate News & Insights | realtor.com®.

6 Things You’ll Love (and Hate) About Selling a Home This Spring

March 18, 2019

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For many home sellers, there’s no better time to list than the spring, and for good reason: This is peak home-buying season, folks! Buyers turn out in droves once warmer weather finally arrives, bringing people out of hibernation mode, and bidding wars abound as buyers look for ways to one-up their competition.

The bad news? Selling a home during the spring isn’t free of pitfalls.

Indeed, “Spring home sellers still face challenges that they need to prepare for,” says Chris Dossman, a real estate agent with Century 21 Scheetz in Indianapolis.

Since knowing what to expect can help you nab a great offer, here are six things you’ll love—and hate—about selling a home this spring.

You’ll love: All the demand

While home sales decline in the winter (chalk it up to bad weather and holiday obligations), many home buyers blitz the housing market in spring, says Dossman. To meet that pent-up demand, many sellers list their homes at this time of year. It’s no surprise, then, that the lion’s share of real estate agents say March, April, and May are the best months to sell a home. With so many buyers competing for homes, sellers may be in a stronger position to spark bidding wars.

You’ll hate: All the competition

Demand is strong, but so is competition among home sellers, says Kimberly Sands, a real estate broker in Carolina Beach, NC. According to the National Association of Realtors (NAR), the four heaviest home-selling months—May, June, July, and August—account for 40% of an average year’s total home-selling volume.

Want to compete with other home sellers and fetch top dollar for your house? Presenting your home in the best light is crucial. This may entail decluttering your house, having your home professionally staged, or making minor repairs so that your property is looking in tip-top shape when you put it on the market.

You’ll love: Selling in warmer weather

Open houses are often more successful during the spring than in the winter, says Dossman, since the nicer weather makes buyers more willing to emerge from the comfort of their homes to shop for houses. Another boon for home sellers: Daylight saving time gives buyers more time to look at houses, which means your property can potentially be seen by more people, says Dana Hill, vice president of Buyer’s Edge Realty in Bethesda, MD.

That said, “Sellers still need to do some prep work before holding an open house,” Dossman adds. To make sure your home is ready to be seen, do a thorough cleaning, remove such personal belongings as family photos and religious artwork, and trim your lawn for maximum curb appeal. Pro tip: Take a hike for a few hours during the open house. Buyers will feel more comfortable asking questions of your agent if you’re not hovering in the background.

You’ll hate: Fighting for your agent’s attention

Because this is a busy time for home buyers and sellers, it’s also a busy time for real estate agents. Unfortunately, some agents may take on more clients than they can handle at one time. That’s why it’s important to find a listing agent who is going to put the proper level of effort and time into selling your home. “If your agent is distracted, you’re not going to get great service,” Sands warns.

There’s no hard-and-fast rule for the maximum number of clients an agent should be working with, but make sure to address this topic when interviewing prospective agents. If your gut says you’re not going to be a priority, continue looking, says Sands.

You’ll love: The higher valuations

When your home’s value is assessed by a home buyer’s appraiser, the appraiser will look at data for comparable homes (or “comps”) that were recently sold in your neighborhood. The good news: With more homes selling in the on-season, the comparable data tend in your favor, Hill says. In other words, your house is more likely to pass the home appraisal, assuming that you’re selling it at around its fair market value.

You’ll hate: The picky buyers

Naturally, some buyers can afford to be more selective when there are more houses to choose from, says Dossman. For instance, if your home clearly needs major repairs, they might simply pass. Add in the fact that most spring buyers aren’t shopping under pressure (as they might be during the winter), and you can expect to have a larger pool of picky house hunters in the spring than you do during other seasons.

The bottom line

Spring is unequivocally the busiest time of year to be selling a house, and though more demand from buyers can be good news for home sellers, there are still obstacles you need to plan for when selling a home at this time of year.

The post 6 Things You’ll Love (and Hate) About Selling a Home This Spring appeared first on Real Estate News & Insights | realtor.com®.

6 Presale Home Improvements Sellers Wish They’d Never Made

December 4, 2018

Every seller wants their home to stand out from the crowd, and that often means beefing it up with shiny new improvements before putting it on the market. But sometimes owners go overboard, and the repairs become more costly and time-consuming than they’re worth.

To help you learn from others’ mistakes, we gathered real-life stories of home sellers who woefully regret the presale renovations they took on.

Regret No. 1: Going too trendy

Photo by Sweetlake Interior Design LLC

Beware of falling for decor fads when it comes time to pretty up your home.

“I had a seller whose home’s original lighting fixtures were pretty standard brushed nickel and oil-rubbed bronze, circa the 2000s,” says Monica Weddle, a real estate professional in Raleigh, NC. “They were nothing offensive, just boring.”

The seller, thinking the home needed more of a “wow” factor before she put it on the market, swapped out all of the perfectly serviceable lights for bold midcentury fixtures, to the tune of around $2,000.

“That’s great if you’re sure your buyers are going to love that style,” says Weddle. “But her eventual buyers didn’t. In fact, they made an appointment for the day after closing to replace every single one.”

Regret No. 2: Smart house, dumb decision

We live in a plugged-in era, but living in a house surrounded by technology is not everyone’s cup of tea.

“One seller of mine decided to make his home high-tech and had the lighting, window shades, and sound system all controlled from his phone,” says Steven Gottlieb of New York’s Warburg Realty. “He paid a lot of money for these expensive bells and whistles. But none of the prospective buyers who came in cared.”

Instead, buyers were all focused on the space itself—and the lack of light and poor views.

The eventual buyer turned out to be a person interested in tech and smart homes. But by the time the deal closed, he felt the apartment’s technology was outdated and therefore wasn’t interested in paying extra for the existing features.

Regret No. 3: Adding a guesthouse

Not every home shopper dreams of bringing in extra income by renting out the guesthouse. Joel Bennett of the vacation platform of Tokeet.com found this out the hard way when selling his first house in Merida, Mexico. His real estate agent convinced him finding a buyer would be tough, so a week after listing the home, he made the rash decision to renovate the detached guesthouse to function as a vacation rental property, thinking this would add value.

He spent about nine weeks—and $3,000—on the project while the property was on the market. The exterior was painted, interior floorboards were resurfaced, and the stairway was replaced.

“I did a lot of the work myself, since I had a bit of free time back then,” says Bennett, who was proud of the restored space.

“Then some eccentric character approached my real estate agent with an offer right on the nose,” says Bennett, who accepted the offer. But lo and behold, the buyer ended up demolishing the guesthouse.

To add insult to injury, Bennett says the buyer put in “a swimming pool where the guesthouse stood with a gaudy stone wall waterfall at the shallow end.”

Regret No. 4: Rehabbing the roof

At first blush, rehabbing a major system in the house—like the roof—may seem like a no-brainer way to attract a buyer. But it’s not always worth it.

“I worked with sellers who were told by numerous buying agents that if they replaced their roof, then they could sell their house quicker,” says Shawn Breyer, owner of Georgia’s Breyer Home Buyers.

Without talking to their own agent, the sellers tore off the roof and installed a new one—a decision that cost $11,390. When the project was done, the house sat on the market for months, despite the brand-new shingles.

“To move the property, the sellers ultimately had to reduce the price by $17,000,” Breyer says.

Not only did the roof not make a difference in the home sale, but the decision to sink money into the repair led to a total loss of $28,390.

What the sellers should have done, according to Breyer, was to look at the recently sold houses—not just those that were listed—in their area to determine what to fix or leave alone.

Regret No. 5: DIYing to cut corners

Some home improvements are better left to the pros. It’s a lesson Debra Carpenter learned the hard way when she put her first house up for sale.

“I thought I was going to easily flip it for a giant profit,” the Idaho-based real estate agent says. “Instead, I made all kinds of unneeded improvements that didn’t increase the home’s value. They only narrowed my profit margin!”

Her biggest mistake was purchasing four “granite-look” painting kits to redo the counters in the kitchen and bathrooms on a budget.

“It turned out terribly—gray and black paint blotches that looked nothing like granite,” says Carpenter.

The counters all had to be redone, costing thousands of dollars more than she had originally budgeted.

Regret No. 6: Opening Pandora’s box

It’s common to want to complete some home improvements before putting your house on the market, but doing so might plunge you head first into a mess of expensive repairs.

“I had a seller who wanted to renovate his two-family home before putting it on the market,” says Rebecca Haines, account coordinator at New York’s Relevance International.

The seller wanted to install new insulation throughout the home, despite the contractor’s warning that gutting the walls could lead to plumbing problems.

Sure enough, the difficulties started piling up. The seller had to install a new sprinkler system throughout the entire house to meet new building codes. This ended up costing thousands of dollars, and the seller did not receive a good return on the investment.

The post 6 Presale Home Improvements Sellers Wish They’d Never Made appeared first on Real Estate News & Insights | realtor.com®.

Your Listing Is Turning Buyers Off! Here’s Why

November 29, 2018

The best way to get potential buyers through the door and interested in your home is with a stellar online listing. Photos of the house and a description of the property are standard fare, but not all listings do what they’re supposed to do. In fact, some might actually do more harm than good.

In many ways, trying to sell your home is like applying for a job, and your online listing is the resume or cover letter. If it’s not polished, you’ll never even get to the next phase.

So, what are the parts of a listing that can turn buyers off? Below are some of the worst offenses.

1. Lackluster (or non-existent) description

It can be hard to sum up your home in a couple of paragraphs. However, if you want to attract buyers, you’ll need to paint an inviting picture of the property.

“If it is a lakefront home, highlight the best parts of living on the lake; if it is an urban town, mention that you are within walking distance of top-rated restaurants,” says Cynthia Emerling, listing specialist at Finger Lakes Premier Properties in Canandaigua, NY.

Work with your real estate agent to pinpoint what buyers are looking for in your area, so you can mention it as early as possible in the listing description.

For example, Emerling’s company specializes in lakefront vacation homes, so “the views, the dock, and the topography of the land are all features that we highlight prominently.”

Also keep in mind that the online listing might initially show just a couple of lines of text, so make sure the most eye-catching information appears first.

2. Too much (or the wrong type of) information

Colorful listing photos or descriptions are sure to entice, but you have to be objective. Your favorite aspects of the home might not have the same effect on buyers.

“I had one seller that wanted to include photos of bunnies that lived in the backyard,” says Kris Lippi, real estate broker and owner of Get Listed Realty in Hartford, CT.

However, Lippi didn’t think that would necessarily be a selling point—and buyers might actually be concerned that the rabbits were destroying the lawn.

3. Amateur photographs

bad online listing
Photography equipment should never be showing in your listing photos!

Really Bad MLS Photos/Facebook

Your smartphone takes some really good photos, but that doesn’t mean they’re good enough to be used in your online listing.

“Everyone thinks they can take quality pictures with their smartphones and save a few dollars, but you only get one chance to impress potential buyers online,” says Robert Taylor, owner of The Real Estate Solutions Guy, a house-flipping company in Sacramento, CA.

That’s why it’s important to feature high-quality photographs shot by someone who has experience taking photos for online listings.

“A professional photographer will have the correct camera lenses, lighting, and angles to allow the entire room to be seen in a single photo,” Taylor says.

Jim Stevenson, a real estate agent at Realty One Group in Doylestown, PA, agrees that pictures taken by camera phone are no match for high-quality professional photos.

“I can’t tell you how many times I’ve seen the infamous ‘real estate agent in a mirror’ shot,” Stevenson says. “When the photo quality is lacking, it sends a message that your home is low quality, too.”

4. Not staging your home

bad listing

By not staging a home, you’re missing out on the opportunity to show potential buyers how the space can be used.

realtor.com

While many buyers like to think of a new house as a blank canvas for their own furniture and design tastes, leaving the rooms completely devoid of furniture and art in the listing photos can hurt you in the long run. Buyers like to see the potential of the home, so staging is highly recommended.

“When a house is staged, you can get the sense of use and purpose for each space,” says Matt Morgus, a San Francisco-based real estate agent.

That’s especially important for houses with open floor plans.

“Open floor plans are extremely popular to home buyers in today’s market, but sometimes it’s hard to differentiate a space with no furniture,” Morgus says.

5. Too many days on the market

Buyers look closely at the listing price and days on the market (DOM) because this information can help them determine whether the house is priced too low or too high—and how much they should offer if they’re interested.

Because every real estate market is different, there isn’t a hard and fast number of days it takes for a listing to be considered stale. However, most real estate agents agree that it takes about 30 days on the market for a listing to lose its luster.

So how can you revive a stale listing? Additional marketing efforts like new photos or an added incentive (free tacos with purchase, anyone?) may help. But the most effective way to generate more buzz about your property is with a price adjustment.

“If you have been on the market for a while and activity has stalled, you should consider reducing the price,” Lippi advises. “Even if you reduce it by a small amount, it will show up in buyers’ emails again and appear online as a price correction, and this gets eyes on your listing.”

The best tactic, ultimately, is to price the house correctly the first time, so it doesn’t end up languishing on the market for a couple of weeks.

“An overpriced home will force a seller to drop the price of their home numerous times to reach the ‘sweet spot’ where buyers become interested in the listing,” says Breyer.

The post Your Listing Is Turning Buyers Off! Here’s Why appeared first on Real Estate News & Insights | realtor.com®.

How to Price a Home in a Seller’s Market: Go Low, or Shoot for the Stars?

August 29, 2018

How to price a home in a seller’s market may be a question that’s top of mind if you’re listing your home. Much of the United States right now is a seller’s market—which spells potential for major profits. Lucky you!

However: Some sellers may see this as an opportunity to set the bar high—maybe too high—when it comes to their list price. Others may decide on a lower asking price, in hopes of generating a bidding war.

So which pricing strategy works best in a seller’s market? Every approach has its pros and cons, so here’s how to determine the best one for you.

First, assess the landscape

Before you go about setting your list price, you’ll want to survey your area to see whether you’re truly in a seller’s market, says Seth Lejeune, a real estate agent with Berkshire Hathaway in Collegeville, PA.

For a quick assessment, you can check out where your city ranks on realtor.com’s Market Hotness Index, which uses the latest housing data to show which cities are heating up for home sellers.

For a deeper look at your market, however, you’ll have to analyze a few key variables:

  • Average days on market (DOM). This measurement shows the median age of real estate listings in your area. “If houses are selling in your neighborhood in less than 10 days, it’s a strong seller’s market,” Lejeune says. You can find what the average DOM is in your city using realtor.com’s Local Market Trends tool.
  • Asking vs. final home price. In seller’s markets, bidding wars can often erupt among buyers, which means that sellers may enjoy a final sales price equal to their asking price, or more. So, if a home is listed at $450,000 and sells for $450,000 or higher, that’s a seller’s market. In a strong seller’s market, the final sales price is typically at least 10% higher than the asking price. You can compare the listing prices vs. the closing prices in various cities across the country at realtor.com/local.
  • Home prices over time. Rising home prices over time are a sure sign of a seller’s market. You can determine whether home prices are rising or falling in your city by looking at your ZIP code’s “market price curve” on BuilderOnline.com.

Pricing strategy No. 1: Listing at market value

To assess your home’s “fair market value”—i.e., what your house is actually worth in today’s market (not just what it’s worth in your head)—you can enter your address in realtor.com/sell to get a ballpark figure for your home’s value.

To hone that number further, check what comparable homes recently sold for in your area. Good agents can help you synthesize this info into an asking price that you can justify and stand by, which is important once the negotiations on a home get rolling.

“If you’re working with a real estate agent who understands the market, you have to trust their comps,” says Lou Nimkoff, president at the Orlando Regional Realtor Association.

Even in a seller’s market, Lejeune generally recommends that sellers list their house at market value. “You have to forget the noise, especially if you’re looking to sell in a reasonable period of time,” he says. “For most sellers, it’s always the best strategy, regardless of the status of the market.”

The bottom line: By listing at market value, you’ll be in a good position to get a full-price offer relatively quickly.

Not in a rush to sell? Keep reading.

Pricing strategy No. 2: Listing high

If you’re not on a tight timetable to sell, you could price your home above market value—typically 5% to 10% more—to see if you can nab a great offer. But that approach has its flaws.

For starters, “The last thing you want to do is price your home too high and then have it just sit on the market,” says Nimkoff. When that happens, your house can become stigmatized in the eyes of home buyers, which can make it even more difficult to sell, Nimkoff says.

You might also have trouble closing the sale if your lender’s appraisal of your home’s price doesn’t come in at that same high number.

“Even if you find a buyer that’s willing to pay you $400,000 for a $300,000 house, a lender may not loan that much money,” Nimkoff says. “So, unless you have an all-cash buyer, it would be next to impossible to close the sale.”

That being said, some people have success selling over asking price by targeting investors with the ability to make cash offers, says Dan Burz, an agent at Douglas Elliman in New York and New Jersey.

The bottom line: By listing above market value, your home might sell at a premium—but there’s a greater risk that it doesn’t sell, especially if you’re unwilling to reduce the price.

Pricing strategy No. 3: List low

One way to get your property more exposure, Nimkoff says, is to set the list price below market value—generally 5% to 10% under—in an effort to attract more buyers and potentially spark a bidding war. “If you price low, you can probably get multiple offers within one to two days,” says Nimkoff.

A bidding war is a good problem to have if you’re a seller, but “the more offers you receive, the more options you have, which can make choosing the best offer challenging,” Nimkoff says.

For some sellers, the most appealing offer is the one with the fewest contingencies; for others, the best offer is the highest bid. It depends on your priorities.

The bottom line: This strategy can backfire if you receive only one offer for asking price or less. That’s less likely to happen in a seller’s market, but it’s always a possibility. There’s also less wiggle room for you to negotiate if you receive a lowball offer.

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