These days, anyone can sell their own houses. There are direct listing portals which can connect you directly to buyers. With tools like these, are agents essential? Is it possible to save the agent commission by going direct? After all, what the agent does is to show the house and tell people where the living, bedroom and toilets are right? Well, technically it is not wrong to do so. You can sell your home yourself. However, have you ever wondered how to get the highest possible price for your unit?
The concept is not new; it is just the fundamental law of supply and demand. Higher demand and lower supply will mean that buyers are willing to come up a higher price for your unit. Since you can’t control when your neighbour decides to sell, how do you create a higher demand then?
Steps To Take To Get All That Demand
1. First, you will need to understand the valuation price of your unit. You may have a certain preferred selling price in mind due to whatever reason. It can be sentimental, or the amount that you need to sell to purchase the next unit. Getting a professional valuer to determine this price is crucial. If this valuation price is very far from what you are considering, serious buyers will not call. Wait until the market is close to your expectations before putting the unit for sale. However, how do you determine if the market price is going upwards or downwards? As shown in our price depreciation and J Gateway article, property prices can move in very different directions within the same time frame. That’s when help from a professional realtor would be beneficial.
2. After you have gotten your valuation price, you will still need to do a comparative market analysis. Why? The valuation price uses past transactions as a reference, not those which are competing to sell in the market right now. The market price is always fluid, once another unit gets sold, this valuation price will change as well. So listing at the correct amount is crucial.
3. So how do you get the maximum number of interested buyers to view your unit? That’s where you need the exposure across most of the major property portals in the market. Unfortunately for the direct home seller, most of these big portals only accept listings from agents. Why? It is a simple business model, those who pay more get more traffic. These portals collect way more from agents than individual owners. Interestingly enough, if you were to pay for help on one of those direct portals, they will still advertise on these popular websites.
4. Simply advertising on property portals is not sufficient. You will need to connect with agents who are marketing units in the vicinity as well. These agents would have made contact with buyers who were looking at the specific area a few months ago. These buyers may not have gotten anything yet because none of the listings was suitable. However, your listing might just fit their requirements.
5. You will need to stage your place for an open house. Staging is crucial, that means fixing minor problems like cracks in the wall, repainting or hide any other eyesores that are obvious. If the value of your property is higher, it might make sense to get an interior designer to do the staging for you. There are cases where the property is sold only the 2nd time round after investing $150k to $200k of interior design work. Not only was it sold, it even managed to fetch $500k above the initial asking price.
6. You will need to take good photographs. Angle, positioning, lighting all play an important role. Sometimes, it even makes sense to get a virtual tour done. Those that respond to ads with virtual tours means that they have seen the place and are willing to make the trip down. They are incredibly potential buyers.
7. In addition to the virtual tour, you will need to qualify these buyers on their financial affordability. Some buyers think they can afford the property but in reality are unable to do so. Spending more time with them during the open house will mean lesser time with those who will eventually buy it.
8. You will need to set up an open house over the weekend within a time frame of 1 to 3 hours, depending on the number of visitors. If your unit is west facing, it would be better to show the property in the morning. Now, this part is crucial; there may be buyers who want to view the unit earlier during the weekday. Resist the temptation of showing and consolidate all potential buyers on that very weekend. Don’t worry if they say they can’t make it over the weekend. If their intent is strong enough, they will come.
9. At this open house, you would have gotten all the buyers in the current market that is looking for a property like yours. Meaning to say, this is when your unit is at its highest demand and the only time you can get the highest possible price. Most homeowners at this point make a common mistake. They feel that the offer is not as high enough. Or they think that the offer came in so fast that maybe the 2nd one will be higher. Unfortunately, once demand dissipates as shown in the graph, the price will collapse. Of course, except for a market that is moving upwards. That’s when the supply starts to shrink. In that case, it might make more sense to list the property later on.
So, there you have it. The basics of how to sell your house at the highest possible price in the shortest time. While it may be possible for you to sell your own home, getting an agent’s help might make more financial sense and netting you a higher return. To understand how we sell houses in one weekend at the highest possible prices, feel free to contact us for a free consultation.
Read Our Other In-Depth Resale Analysis Here!
Article contributed by Jerry Wong
Jerry Wong is a realtor with Propnex Realty. He loves coffee, cookies and condos. Most importantly, he loves connecting people to properties and gets enormous satisfaction when they acquire their dream home or make that capital upside in just a matter of months. Buy Jerry a coffee, and he will meet up with you on a 1 to 1 session to share the following
- How certain factors affect real estate prices. (Using historical transactions as references)
- Applying lessons from history to determine if a condo has the potential for upside or not. These condos can be those under construction, resale or the very one you are staying in right now.
- Or just prepare the toughest question you have on your mind! If it is interesting enough, the answer will be in a blog post and shared with everyone!
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