Selling a home is a huge financial transaction – probably the largest of your life and one that can impact you financially for many years to come. It’s only natural, then, that as a home seller you want to do everything you can to help you get the price you want. And if you know the right strategies and tactics, you probably can get that price. So check out these 5 tips to get the price you want for your Los Angeles property.
1. Counter at List Price
Most of the time, when a buyer makes the first offer, it will be below the list price, sometimes significantly below. Of course, you won’t accept that low-ball offer, but what should your counteroffer be? Savvy real estate pros advise countering at your list price. Then, when the buyer comes back with another offer, it will be much closer to your list price – maybe even at or slightly above the price you want.
2. Start a Bidding War
Another way to get the price you want for your Los Angeles property is to start a bidding war. For the more people you have bidding, the higher the bids go as buyers compete against one another. The strategy here is to list your property, making it available for showings, and then schedule an open house just a few days after listing. When you do this, buyers expect competition and, as a result, are likely to bid higher in order to beat out the other early bidders. After you get several bids, you can choose from among the highest ones to find the offer that best suits you.
3. Set an Expiration Date
Another highly effective tactic to get the price you want for your Los Angeles property is to set an expiration. As any savvy marketer will tell you, creating a sense of urgency in buyers will get them to offer more and offer it quicker. So when you get an offer and then make a counteroffer, you put an expiration date on your counteroffer. This tactic forces the buyer to make a decision and allows you to move on to better offers much more quickly if the buyer doesn’t agree.
Another benefit of setting an expiration date, besides helping you get the price you want and closing a deal quickly, is that it helps you get your property back on the market much quicker. For while the counteroffer is outstanding, your property is essentially off the market because many buyers won’t make an offer while another is in the works. This tactic also serves to reduce the time your property is on the market – which is desirable because the longer it sits on the market unsold, the lower your chances of getting the price you want.
4. Offer to Pay Closing Costs
You can also get the price you want for your Los Angeles property by agreeing to pay closing costs. Although this is becoming fairly standard, if you offer to pay these costs – typically around 3% of the purchase price plus various fees – a buyer will feel more inclined to pay the price you want. Many buyers simply can’t afford closing costs after making the down payment, and this tactic will help you get your price. You may even be able to raise your price slightly to offset the closing costs when buyers can’t afford to pay them.
5. Hire an Agent
Our final suggestion to help you get the price you want for your Los Angeles property may be the most important. And that is to hire a qualified local real estate agent. Your agent will have a thorough understanding of local market conditions and what buyers want and so will be able to negotiate a price that suits you.