Special Reports

3 WAYS IT’S POSSIBLE TO SELL

YOUR HOME ABOVE MARKET VALUE

What really is fair market value? If you ask a real estate appraiser what the “fair market value” (FMV) of your home is, they would ask you to hire them to do an appraisal.

The appraisal would consist of the appraiser evaluating and comparing your property to other properties that have sold either similar to yours or in the same general area as your home.

The appraiser would, when comparing your home to others that have sold, make adjustments either upward or downward in price based on the condition, size, improvements, etc.

Even in the same neighborhood some houses that have the same floor plan, the same size and built by the same builder will sell for different prices. Some may sell below market value, others at market value and occasionally another above market value.

Let’s see why some homes can sell above market value!

One way it’s possible for your home to sell above market value is if you are willing to make the property available for immediate occupancy. It’s not uncommon that someone is being transferred and must not only buy a home immediately…but they must also move in immediately. This occurs sometimes when a corporation is transferring someone into the area. If you can accommodate the move in date of the purchaser it’s very possible they will pay more money for your home than one just like it where the buyer would either have to live in an apartment or motel or leave the family behind in another city if they are relocating.

A second way it’s possible for your home to sell above market value would be if you were to offer the buyer attractive financing. Attractive financing could mean several things. If you, the home seller, paid money to buy down the interest rate for the buyer, it wouldn’t be unusual for the buyer to pay top dollar for your home. As long as the “points” you would agree to pay the lender were less than the price increase you would receive this would be a good strategy. By paying points upfront the interest rate would be lowered to the buyer. If a buyer sees that they could save lots of money in interest over the life of the loan, they may be willing to pay more than fair market value. Another financing option that can get you more than fair market value is holding owner financing. For various reasons some buyers either can’t or chooses not to obtain bank financing. If you hold financing for the buyer, with a good down payment, of course, you not only can get above market value for your home, but also an interest rate that might also be above the current bank rate.

A third way it’s possible to sell your home above market value is to have more than 1 buyer that wants to purchase your home.

When a home first comes on the market for sale, it may attract lots of attention if it’s priced right. By priced right I mean at fair market value. If the market is strong, there are lots of buyers and the inventory is low then it’s not uncommon for there to be several buyers that want the same home. When several buyers want to buy the same home at the same time, it’s not unusual that they raise the price of their offer above the asking price.

The important thing to remember here is that the asking price for the home must start out at fair market value rather than above market value. If the property is priced above market value, it will not create the initial flurry of activity necessary to attract multiple buyers.

When you invite me to look at your home we will discuss how to get you the highest possible price for your home.

I look forward to talking with you about the sale of your home!

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