Focus On Net Proceeds To Seller To Save Money Selling A Home
When it comes time to sell your home, will you focus more on the final sales price you hope to attain, or will you be more concerned with the bottom line (net proceeds to seller)?
To me, it's a question with an obvious, simple answer.
But my experience working with both homebuyers and sellers has taught me that this is where the typical homeowner ends up leaving a few thousand dollars on the table.
Sales Price Versus Net Proceeds To Seller
Whether you want to buy a home or sell a home, I encourage you to first identify your priorities. Often times, money is near the top of the list. But so too is time, convenience, and other things that are important outside of the simple characteristics of a property.
For most people getting ready to sell a home, money will be very important. But my experience has shown me that they are out of focus on what should be critical to them during the sale.
Here's an example conversation that occurs often with home sellers:
Me: What would you like to get for your home?
Home Seller: I'd like to ask $300,000.
Me: What will that net you?
Home Seller: What do you mean?
Me: I am referring to "walk away money." How much will you walk away with if you sell your home for $300,000.
Home Seller: I'm not sure.
Me: Is the amount of money you walk away with important?
Home Seller: Absolutely.
Me: So you really do not care as much about the final sales price of your home, except you want it to be an amount that maximizes the amount of money you walk away with, correct?
Home Seller: Yes.
And that is truly how it goes with most new home sellers. They should (and do) care less about what the home sells for and more about what they get. But this conversation is not happening when many sellers are talking to other agents.
How do I know? Because this works as part of our smart buyer's strategy. We know that most sellers are so entrenched in gaining their sales price that they are willing to concede on other important points in the sales contract.
I think it must be an ego thing. Once a seller identifies their asking price, they would pay money to attain it. That is not logical, but I see it happen all the time.
NOT EVERYBODY SUCCEEDS
Did you know that more than 30% of home sellers fail with their first listing agent?
That's right, they end up waiting and hoping for a lone buyer to come in and offer anything for the home when they instead should be seeing multiple buyers competing for their home.
Sell your home fast and for top dollar, we'll show you how!
Why Home Sellers Leave Money On The Table
Homebuyers working with highly skilled real estate buyer's agents end up prying money away from home sellers from within the purchase agreement (sales contract).
Home sellers leave money on the table because their ego takes over and they fight (at all costs) to get their asking price. They end up paying for things that should be negotiable, but they end up happy because they got their price.
And as innocent as this sounds, they truly get less money at closing.
So what is the morale of this story?
When you are interviewing agents for the job of selling a home, pay close attention to see if they try to steer you towards an asking price, or instead if they want to help you understand your bottom line.
If the former is true, keep interviewing more agents. If the latter is true, then perhaps this is the agent that will help you maximize net proceeds to seller at closing.
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