What you don't know about selling your house that will cost you $$$

Most people who list their home for sale loose money because of this simple thing.  If they knew, they would save both time and money.  Most sellers loose money while selling their home, because they don't understand two things:

1. Most home sellers do not know how the real estate agent sets a price.
2. Most home sellers do not take into account they money they are loosing while the agent knowingly lists the home above market value.

Together, we are going to fix this issue, and you are going to learn every thing that you need to know to get the highest value for your home.

Step 1 - Understanding the Price Quote

You meet two agents.  Agent #1 tells you that she will sell your house for $200,000 in 30 days or less.  Agent #2 is confident that your house is worth $250,000.  Who is right?  Who do you give the job to?

I can tell you that most people give the listing to Agent #2.  Who would ever choose to sell their home for $200,000 when they could sell the home for $250,000?  It's only natural to pick the agent that gives the highest quote.  Right?

If you would list your home for $250,000 in this scenario, then you have done what thousands have done before you, and here is the problem: The agents know that the larger the number they give you, the more likely that you are to pick them and give them the "Exclusive Right to Sell".  So, agents learn early that to get the contract with you, they must quote numbers that are higher than the market can support!

Hear what I am saying.... I am NOT saying that the house will never get $250,000.  I am saying that if an agent promises you $250,000 for this home:

1. there is a very good chance that the agent feels uncomforatable about this price quote
2. there is a very good chance that the agent believes that the house will sit on the market for a long time at this price
3. there is a very good chance that the agent will talk to you after 60 days about slowly dropping the price, and we will talk more about this later.

In fact, it is very unlikely to find an agent who will be honest with you about the value of your home, because they know that you are going to give the job to the person who provides the highest reasonable number that makes sense to you.

Step 2 - Understanding Reality

You're house has a set value. It does.  Today, right now, there is an exact price that it will sell for. There is a very specific buyer that is going to pay that amount, and the problem is:

1. No one knows who that buyer is or where they are.
2. No one knows what price they are going to offer that you are going to accept.

But the key is this:

1. That buyer exists.
2. The date, time and offer amount is already set at some point in your future.
3. When it comes, you will accept it.

The agent's job is to tease Buyers with your house, to entice offers, so that you can accept or reject the offers.  The agent cannot determine the price of your house. Only the buyer decides what he or she will offer.  Then it is up to you to accept or reject.

The reality is this: when an agent tells you that they can get you $250,000 for a home, they are making a guess.

Step 3 - Fixing the problem

The key to fixing the problem is by doing the following.

Fix The Problem - Method #1

The first choice you have is to understand that the agent is intentionally overvaluing your home and to understand that the home's price will likely have to be dropped several times during the listing period.  In a rising market, you can get lucky, and you might actually capture a buyer willing to pay above market value for your home.  While you search for that buyer, you will be paying the mortgage, you will be paying the electric bill, you will be paying the water bill, you will be paying the gardener.

Sometimes, letting the agent fish for the highest price will cost you in the long run. It is a gamble, but at least, you are now aware that the gamble exists, and you can accept those risks knowingly.

Fix The Problem - Method #2

The second choice you have is to ask the agent to show you ALL the comparable properties and not just the best 3.

By looking at ALL the comparable sales, you can see what buyers are offering for houses just like yours, and you can help make the decision about where to price your house.  This strategy is called "Choosing Your Position".

In the hypothetical example above, the second agent "chose a position" of $200,000.  Looking at the bell curve graphic, you can see that even seller #2 was choosing a high position, because houses just like yours were selling in larger quantities at lower numbers.  Very few houses were selling around $200,000.

When you see ALL the comparable listings, you can be more knowledgeable about how much risk you are taking when you choose a position like $200,000.  Depending on your financial situation, you may choose a position closer to $187,000, because you see 3 or 4 listings "sold" at that price, and you know that getting a reasonable deal in a reasonable amount of time.  You know that often this is a choice that will result in higher profits for YOU than waiting for a buyer who will pay $50,000 more for your house over the house that is currently listed down the street that looks almost exactly like yours.

Again.... Method #2 is help the agent choose the position by having the agent show you all comparable listings before setting the price on your home.

Fix The Problem - Method #3 

If you are in a big rush, sometimes finding an investor is your best bet.  An investor will give you a price in 48 hours. They are a guaranteed buyer.  They close quickly. They take your house as is with no headache, no detailed property inspections, no repair requests.  This method will get you the largest amount of money only when you are in a rush to sell (Foreclosure, Bankruptcy, Divorce, Moving tomorrow to a new state, etc.).

Obligatory Sales Pitch

No matter which method you choose, it is essential that you understand that your listing agent "Hopes" to find you a buyer at the listing price.  Unless you are selling to an investor, there is never a guarantee, so the best option is to be involved in setting the price and understand the risks.  Ask questions and work with a Seller's Agent who is willing to share information about price and strategy.

If you are selling in or near the San Joaquin Valley, then you should contact Tarah Poochigian at Watson Realty out of Bakersfield.  You can find her facebook page here:

The best seller's agent in Bakersfield: Tarah Poochigian, Watson Realty - http://fb.com/agentTarah

If you want to sell your home within 48 hours, skip the agent and call a real estate investor.  Phoenix Homes buys and sells properties mostly in Bakersfield, CA, but as investors, they will buy anywhere. Get an offer on your home in 48 hours or less by visiting the following web site:

Get an offer in 48 hours or less: Phoenix Homes - http://phoenixhomesltd.com