How to Sell Your House for Over Asking Price

Are you thinking about selling your home?

Selling your house can be an emotional roller coaster. On one hand, you’re probably hoping to make a profit and can’t wait to move on to something else. It can also be one of the most stress inducing experiences of your life. You might wonder if your house is going to sit on the market or get sold right away. Another thing that will probably cross your mind is whether or not your agent knows what they’re doing.

That probably didn’t make you feel too confident, but don’t worry, I think this story will help.

Recently, it was time for me to sell my home. I was going through all of the aforementioned emotions of selling a house while also breaking off an engagement. Clearly, not the best-case scenario. To make matters worse, the day I went to list my house (I have my real estate license) an identical house in my neighborhood also went on the MLS. What’s worse is that they decided to list for $10,000 cheaper than my market research had indicated. Welp, there goes $10,000 out of my pocket I thought.

Keep reading, I promise it gets better.

So, I went ahead and listed my house for the same price as my competitor. In addition, I decided to have my open houses the same weekend as the other house. It was a risky move, but it ended up working out.

Cars were lined up the entire street. People were coming and going by the dozen, or so it seemed. At the end of the weekend, I recorded 160 names on my attendance sheets and entirely ran out of brochures (I made 150 thinking this would be too much). But, so what? This doesn’t matter unless people buy, right?

I ended up receiving 12 offers.

The best part was that of the 12 offers I received, most were above asking which drove up the price. A bidding war was on!

In the end, my house ended up selling for $17,000 over asking price. This was $7,000 more than I thought I would get when I originally listed my house. And what about my neighbors, what did their house go for?

My neighbors only received asking price for their house.

Looking back on my experience, I’ve identified 4 factors that enabled me to stand out and receive above asking price for my house. My hope is that you can do the same by implementing these tactics.

Hire an All-Star Agent

When selling your house, hiring an agent is single-handedly the most important decision you need to make. Everything else mentioned in this post is directly impacted by your agent’s advice. In order to get great advice, you need to find a great agent.

When the time comes to find an agent, I highly recommend asking for referrals from people you trust. If they care about you, they will only put their stamp of approval on someone who they would use again. After getting referrals, ask the agents to give you a listing presentation. Interviewing 3 agents will give you a good idea of who to go with. The person with the best overall plan, not necessarily the highest listing price, is the person I’d recommend using. A veteran agent knows the market and should be able to provide a track record of success executing their plan.

Some people might have more experience selling homes than others and want to sell a house on their own to save on commissions. I’d strongly advise against For Sale By Owner listings unless you are a registered agent with selling experience. Yes, I did sell my own home, but I had advice from a mentor who is a top selling agent at Berkshire Hathaway. Don’t try to cheap out: you’re going to have to pay another agent’s commission when you sell, so you might save 3% selling on your own...BUT a great agent will easily pay for themself and more. They take the negotiating, legalities, and other heavy lifting out of the equation and let you focus on everything else you have to worry about when selling.

Price it Right

An agent can advise the seller, but they can’t make them list for a certain price. Ultimately, this is up to the seller. To make an informed decision, make sure to have your agent pull data from similar houses in your area. A CMA (comparative market analysis) will illuminate trends in your housing market that are essential when determining a list price. Typically, I’ve seen agents give 3 prices and let the seller pick the strategy. Each strategy comes with risks and rewards, so be sure to look into each.

1. Above Market

Listing above market is a roll of the dice. If done under the right circumstances, you can make a killing. However, competition tends to make this my least favorite option. When someone sees your house listed over asking and another person’s at a lower price, it’s going to raise the question: what’s so great about that house? You better have an answer with data to prove it. Also, these houses tend to sit on the market longer, which costs you money on your mortgage and bills by holding it longer. I’m not a fan, but there are some merits to this strategy. Do your research.

2. At Market

Listing a house at market is the safest strategy. You’re putting all your cards on the table and letting the buyer decide if the price is worth it. When priced at market, your house will most likely sell faster than if it were above asking. Each situation is different, so this is a generalization, but if you ask enough agents, they’ll probably agree. Another positive is that you’ll probably get around what you’re asking for if you have a strong negotiator backing you. The downside, however, is that your upside is limited--oh the irony-- because it doesn’t tend to drive bidding wars. This is a very safe and sound strategy.], let your agent guide you to the right decision for your situation.

3. Below Market

This strategy has the highest upside in my opinion, but does have some inherent risk as well. A below market house tends to sell faster. In competitive markets, a lower priced house drives more buyers in comparison to all other strategies because they’re looking to save money. As a result of more buyers looking, they will be forced to compete against each other. The best case scenario is what can end up happening when inventory is low and demand is high: a bidding war (what happened with my house). In contrast, the downside is that you might get offers at what you’re asking, which is actually below market value if you priced on the low end. Food for thought.

Do the Necessary Updates

If you aren’t selling a brand new house, there are probably some minor updates that could make your house sell faster. A new coat of paint to make the house more neutral is an example of this. Another might be power washing your house to make it more aesthetically pleasing. Follow suggestions from your agent on what makes sense. Weigh the costs of each update against the time it will take and return when selling.

The reason this is mentioned is because many houses go for sale “as is,” which is a red flag to conventional buyers and a point to salivate over for investors looking for a deal. When you say your house is selling “as is” you are essentially telling everyone that there’s something wrong and you’re waiting for them to find it OR you’re too lazy to fix it. Be sure you consult with an agent and do the work necessary if it will help you boost the value of your house and make it easier to sell.

Use Staging

My mentor told me to either go all in on staging or don’t do it at all. For a house with limited updates that looks older, this might not be the best solution because it’s just putting lipstick on a pig. If your house is in halfway decent shape, however, this can significantly increase the sale price of your home. This is another area worth paying for if you believe that your house will increase in value as a result. Again, weigh the cost versus the return.

People want to envision what it would look like if they owned it, so having a decorator who uses neutral items will help them see this.Perhaps you like your mounted antlers or vibrant color schema. It may work for you, but you need to keep the buyer in mind.

Final Thoughts

Although simple, these 4 tips can help you increase the value of your home and put more money in your pocket. Be sure to hire an all-star agent, price the house right, do the necessary updates, and stage for optimal results. Good luck!