The phrase “leaving money on the table” is an idiom that means not getting enough money as you could have.
If you are like most sellers, you hope to sell your home at the best possible price. After all, no one wants to sell for less than they should.
Most people would rather worry about not paying capital gains taxes than take less money for their home than they should.
There are several strategies your Realtor may try to fetch the highest price, which has been effective for numerous sellers.
Remember that there are no one-size-fits-all approaches to selling a home—what works for one may not work for another. But there are some options you should at least discuss with your agent before you list.
Sound real estate sales strategies often lead to the highest offers in the shortest time.
Over the years, I have found that some sellers are reluctant to take their real estate agent’s advice on pricing. They clearly fear that the agent is underselling their property.
Leaving money on the table when selling a house is not a pleasant thought.
You can easily avoid leaving money on the table by following an excellent home-selling strategy called deferred showings. Keep reading for a detailed explanation of how deferred showings work. They are the second most essential item besides proper pricing.
Following the advice will increase your odds of getting multiple offers over the asking price. Does this sound like something you would be interested in? Who wouldn’t, right?
Don’t Leave Money on the Table—Strategies for Your Home Sale
1. Avoid Pressuring Your Agent to Overprice Your Home.
Wanting to price your home higher than your agent recommends is commonplace but, in many instances, misguided. Of course, you want to set the price high. The higher you set the price, the more money you make, right? Wrong!
Overpricing a house will backfire, making it harder or impossible to sell the home. When you finally lower the price, you will probably have to reduce it to the point where you make less money than you would have if you’d priced it reasonably in the first place. Homes priced correctly from day one always sell for more money.
Overpriced homes languish on the market. Ramping up the days on the market is a surefire way to make less money on your home. Pricing a home accurately will result in more money in your pocket.
Overpricing in real estate sales often comes from some popular pricing misconceptions, including the following:
- We need to price our home with a certain amount of negotiating room.
- If we wait longer, a higher offer will appear.
- A quick offer means we priced our home too low.
- We need the right buyer who will pay more.
- Zillow says my house is worth more.
Mike Akkus of the Akkus Group shared some timeless advice:
“Setting the wrong asking price for your home isn’t just about the risk of leaving money on the table; it’s a critical error that can lead to a damaging ripple effect throughout the entire sale process. An inaccurate high price can deter potential buyers from even considering the property, leading to a longer time on the market. This can create a negative perception among buyers and agents.
On the other side of the coin, pricing a home too low could lead to a sale but it may also result in a substantial financial loss.”
2. Think About Deferring The Showings of Your Home.
One of the most potent strategies for selling a house in a hot seller’s market is delayed showings and an offer due date.
Getting your first interested buyer through the door can be incredibly exciting. Maybe they will make an offer. Perhaps it will sell right away! It may, especially if you are in a strong seller’s market.
There is a good chance a buyer will take a look at the home and make an offer that works for you.
When this happens, it can be challenging to say no. You have an offer and are on the cusp of having the whole situation—all the stress of the sales process—over with.
But by taking that first offer, you may miss out on a better offer that could follow.
Remember that fear of leaving money on the table?
Deferred showings with an extended offer due date provide an alternative to the standard sales process. Instead of listing and showing as buyers trickle in, you put the listing up in the MLS and wait a certain period before showings.
You’re letting many people salivate at the chance to purchase your home, but they can’t see it just yet.
I like to list my properties on a Monday and not let anyone in the door until Thursday.
Buyers can view a home on the multiple listing service for four days before viewing the property.
In a healthy seller’s market, your home should be flooded with buyers that first weekend.
When you follow this deferred showings strategy, the odds of getting multiple offers for your property skyrocket! I have not had a single seller who did not love this strategy. Many of my testimonials specifically mention how they know they would not have got all of their desired terms without doing this.
Bidding Wars Are Far More Likely With Deferred Showings
If you get multiple offers, you may begin a bidding war, resulting in a significantly higher offer for your home. A bidding war is especially likely if you sell at a price point with limited inventory.
You might even see a buyer who puts an escalation clause in their contract, saying they will pay a certain amount more than the highest bidder. That’s all good for you!
Deferred showings do not need to be drawn out excessively, either. Most deferred showings only wait 4 – 7 days before showing the property. You can often get more money from your home by stalling showings by no more than a week.
Having deferred showings mitigates the risk of leaving money on the table. The other part of making this strategy work is having an offer due date. This allows all interested buyers to submit their offer. Nobody is left out. It’s a big win-win for a seller.
A side perk of deferred showings is you can do any of those last-minute fixes you would like to make before the first showings happen.Click To Tweet3. Avoid an Open House by Deferring Showings.
While open houses may seem to be an integral part of selling, they have many drawbacks that sellers are not aware of. One of them is that anyone can go, regardless of whether they belong in your home.
By deferring showings, you should be able to avoid an open house and all its negative aspects.
What are the problems with an open house? Well, to begin with, they are entirely unnecessary to sell a home.
Despite their popularity among real estate agents, open houses rarely attract genuine buyers. Instead, they attract hoards of people who will not buy your home.
The people who show up during the open house will include window shoppers without the financial means to buy the home, curious neighbors, and possibly burglars.
An open house offers an excellent opportunity to look around, find security vulnerabilities, and even create vulnerabilities—like unlocking a window to enter later.
Many sellers don’t realize that open houses increase the odds of a robbery.
Realtors like open houses because they are great for prospecting future business.
Agents often find new clients through open houses. It could be a buyer who hasn’t started working with a real estate agent yet or a neighbor considering selling their home. But they rarely sell the home to those who come to the open house.
Open houses also allow sellers to double-side a sale, often forming a dual-agency relationship—something you should never agree to as a seller!
Deferred showings allow you to bring in multiple potential buyers willing to make an offer without opening your home to the dangers of an open house. Everyone who comes through a showing will be vetted, while those coming to an open house will not be.
The words 'open house' mean just that - open to anyone whether they are qualified or even belong in your home.Click To Tweet4. Remember That Selling an Overpriced Home is Next to Impossible.
Overpriced homes do not sell regardless of what you do. Deferring showings is a powerful strategy in many instances, but it will not make a difference if you price the home too high. You still have to follow the best home sales advice.
Buyers and Realtors know the current market and will not be fooled by an overpriced property. Even if you somehow managed to get an offer for your overpriced home, the buyer’s lender will not loan money on a home that is priced too high.
You’ll end up fighting the appraiser and probably won’t win. There is no way to trick or cheat the system here. The home must be competitively priced to sell.
In hot seller’s markets, where homes are selling over the asking price, real estate appraisals are often challenging. Appraisers in many areas of the country are having difficulty due to limited comparable sales.
Quite often, the sales data lags what is happening in the market. Sometimes, the prices accepted for properties are much higher than the comparable sales data suggests.
5. Hire a Realtor You Trust, and Follow Your Realtor’s Advice.
It is hard to overstate the importance of hiring an excellent real estate agent. A careful interview process is always recommended. No matter how much you research real estate advice, it would help if you recognized that every strategy has weaknesses.
Your agent is the person best qualified to decide your approach.
Even deferred showings are not a fix-all in every situation. For example, relocation buyers may miss out on your property due to deferred showings.
Relocation buyers have only a short time to make an offer before leaving the area. If they are just here for a day and it falls before the showings start, they will miss out on the home.
Because of their unique circumstances, these buyers may make an excellent offer that you will miss out on.
Is this possibility worth not considering deferred showings? No, but it’s worth understanding.
Deferred showings also amp up the stress of the sales process for your agent in some cases, such as in a highly competitive market.
You may have multiple buyers developing an emotional attachment to the home that must now be managed—and you are guaranteed to disappoint all but one of them.
A skilled real estate agent should be able to manage the stress, though.
Discuss the advantages and disadvantages of deferred showings for your home with your agent. As long as you hire a trustworthy agent, it is best to listen to their advice.
6. Make Sure The Marketing of Your Home is Exceptional.
When selling a home, some things are necessary to get top dollar for your property. Make sure you do all of these things to maximize your net proceeds.
You can see how to market your home, which is summarized below.
- Have the home looking its absolute best both inside and out. Selling a home starts with curb appeal and ends with a sparkling interior. Based on years of experience selling homes for top dollar, staging is critical. You don’t need a professional. Any homeowner can prepare their house for sale.
- Make sure the photography on your home is outstanding. Remember this – 90 percent of all buyers find their home from an online search. Photography is of the utmost importance.
- Your home’s description should be well thought out and detailed. Many real estate agents don’t take the time to craft compelling descriptions. Your property should have a compelling story about why it is worth viewing.
- Listing details should be enhanced on the three most visited websites – Realtor.com, Zillow.com, and Trulia.com.
- Provide a professional video tour or slideshow presentation.
- Provide drone photography if warranted. Homes with exceptional views can benefit from having them.
- Have color marketing brochures that buyers can take with them, showing off all the best features of your property, both inside and out.
- Ensure the real estate agent follows up with all inquiries and gives you feedback.
Final Thoughts
While having deferred showings is a smart move, it will be all for naught if you pick a lousy real estate agent who overprices your home and provides little to no marketing.
Don’t make the same mistake so many other sellers always do. Take the time to conduct a thorough interview with at least three real estate agents. Follow these steps to avoid selling your property for less than you should.
Additional Helpful Home Selling Resources
- Why dual agency doesn’t work for home sellers—see a detailed explanation of why it isn’t good for consumers.
- Weighing whether to sell or rent my home – should you rent or sell your home? Get some solid advice on this common choice.
- When to contact a real estate agent to sell my home: Find out when it makes sense to contact a Realtor for your property sale.
Want more great home-selling advice? Look at the above articles for expert advice from other real estate agents nationwide.
About the Author: Bill Gassett, a nationally recognized leader in his field, provides information on how to avoid leaving money on the table when selling a house. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
I have been using the Deferred Method of listing for the last 3 years and it has worked like a charm. The only difference is that the house is available for an Open House about 5 days after it goes onto MLS. I can’t tell you how many agents beg to come in early, which of course I can’t do. It builds a pent-up demand for both agents and buyers when they can’t get what they want. I usually have about 40 people to come to my well-advertised Open Houses close to town and at least 5-6 couples if they are in the Bermuda Triangle of homes. Each time I have had multiple offers within 2 days. I wasn’t able to have an Open House on my newest listing due to parking issues but still did deferred timing. I had 3 offers within 2 hours after showings were allowed. I’m not sure if anyone else in my area is doing this so I hope no one here is reading your blog! Love all of your blogs which give me a lot to think about.
Peggy – agents are missing the boat big time. There is no better sales strategy than deferred showings in a hot seller’s market. I don’t do open houses as I would prefer not to put the seller’s home at risk by having one. With deferred showings you get all qualified buyers. With an open house, you get a mix of qualified and non-qualified buyers, as well as riff-raff that doesn’t belong in the house.
Bill, I usually love your stuff but I think you’re a little bit off on this one. I do believe in the deferred showing, but not for 5-7 days. That is borderline illegal. It is what many larger agencies do in my area in an effort to double-side deals. I know for a fact it happens. They list the property, defer showings to “outside” agents, but have an office tour or allow in house agents to show the property. It’s dishonest and shouldn’t happen. Instead, I list on Thursday’s with no showings until Sunday open house. The deferred strategy you mention works for those 2-3 days and then when there are several buyers at the house all at the same time, it increases competition. I listed 2 houses 2 thursday’s ago, OH on Sunday, both had offers in hand Monday night, both have already had inspections. Seeing other people at the OH caused an internal struggle with buyers to make an offer asap. Everything you said about Open Houses is correct and I let my clients know that. I don’t think they always sell houses, but in this hot Northeast market it helps to give buyers a level playing field and reward sellers with the best price right out of the gate. Oh, and by the way, I only do OH’s for 1 1/2 hours. No need to give buyers more than that amount of time to view the house.
Michael I am sorry but you are 100 percent incorrect. When you defer showings NOBODY can see the house. This means if the listing agent has someone they want to show it to they also have to wait until the showings begin. Absolutely nobody can get in to see the home.
In fact in Massachusetts you are required to have a seller fill out a deferral of showings agreement so they understand nobody is allowed to show the house. There are no exceptions. The form goes to MLS should anyone think there is any funny business going on.
While you are correct that illegal things happen in real estate, anyone is who reputable is not going to put their license at stake.
Open houses are a complete waste of time for a seller. They do nothing but benefit a real estate agent. If anything that would be the cause of double siding a deal, not deferred showings.
The way you are doing it is more of a benefit to you and not the seller. A longer time period before showing begin helps a seller not an agent. In Massachusetts the maximum deferred showing time is 7 days. Most of mine are 5 days. I try to start on a Monday in MLS with showings starting on a Saturday. It works like a charm and the seller is thrilled when they have multiple offers.
Thanks for the reply Bill, but I know that it happens. I met a guy last month, in my town and his house was only shown to people in the listing agents office. He had 2 offers, so it seemed like a great deal to him.
I said, what about all the other agents that could’ve shown it but didn’t have the opportunity. Maybe there was a better buyer out there…
You are incorrect about Open Houses though. I hate doing them and would rather not, but it creates competition. I’m not saying deferred showings doesn’t work, but getting as many interested parties together at one time creates an urgency that isn’t there on individual showings. AND, it just worked 2 weeks ago for 2 listings. I don’t know if we would have had full price immediate offers if those buyers didn’t see the competition looming. In a buyers market, I agree, open houses are a waste of time, but not in this active, low inventory time frame.
Further, by doing 1 open house instead of deferred showings, it creates less stress for the seller. With multiple single showings, they have to pack up kids/pets and clean the house. One open house, 2 hours of their time and it can be done. I guess both methods can work. thanks again. enjoy reading your comments and insight.
Michael if that happened then you should have reported it to the board and MLS. As agents we need to policy bad behavior that not only damages the real estate industry but harms consumers in the process. There is absolutely no need to do an open house when you defer your showings. The whole point of doing deferred showings is the exponential traffic they bring that first weekend.
The difference between an open house and showings is that an open house brings anyone in through the door whether they belong or not. With showings the buyers are vetted. When sellers allow open houses they dramatically increase the odds they will be robbed. Unfortunately, in our business agents like to sweep this fact under the rug all the time.
What is the point of having a mix of people who belong and who don’t? Other than possibly benefiting the real estate agent, there is no benefit to an open house. You get the same sense of urgency with deferred showings – the difference being the seller does not expose their home to a bunch of unqualified dead beats.
You would have sold the house regardless of whether you did the open house or not. The same people who made offers would have scheduled showings with their agent.
I have a new one coming on, possibly today. maybe we will forego the OH and I will defer until next week. I’ll talk to the seller about it.
What I have found works best is listing on a Monday or Tuesday and having the showings start on Saturday. I also put in the listing that offers will be reviewed on Monday afternoon. This gives everyone plenty of time to get their offers in. You really should consider reporting that company you mentioned. That kind of bad behavior really needs to be stopped otherwise they will keep on doing it.
Great points! I don’t do open houses but do use the Coming Soon feature at BrightMLS.