Understand these seven things to help you sell your house for the most money.
Everyone wants to get a fair price for their home, so important that you understand the local trends in your area, along with the best method of selling and the total cost that comes with selling your home. Here are seven things worth keeping in mind to help you get the most for your money.
Know your market
Knowing how to gauge whether you are in a buyers’ market or a sellers’ market is to check out the average Days on Market (DOM) for homes similar to yours. This is a statistic that shows how long homes are actively listed. If homes that are comparable to yours are selling quickly, this might indicate there is a strong demand.
Check out the rate of home price appreciation in your area. This will show you how fast home prices are rising. If your market has a steep increase, it might indicate that a buyer is willing to pay more.
Seasons affect home sells, with most selling in spring since people want to move during warm weather. No matter the season, make sure that you time your sale with the amount of equity you have in your home. This will allow you to cover the costs of closing, plus pay off your current mortgage, and cover the costs of moving.
If you overprice for your area, you are going to have to lower the asking price, and this might make it take longer to sell. Buyers are often skeptical of homes where the list price is steadily decreasing. In turn, this can severely limit your negotiating power. Use a home value tool to evaluate the latest market data for comparable homes. This will help you list your home for a price that buyers are willing to pay.
Understand hidden costs
Understand that there is a lot that goes into selling a house. In addition to the real estate commission of 5-6%, there is also the cost of closing, seller concessions, maintenance and repairs, and the cost of moving. Most often, this totals out to about 10% of the sale price. Keep that in mind as you list your home.
Know how you are going to sell
The traditional route of engaging a real estate agent is the most common way to sell a home. But, given your particular situation, you might benefit best from a For Sale by Owner (FSBO) approach.
A FSBO approach means that you take on all the responsibilities of a real estate agent. You will avoid the costs of your own agent, but you might have to pay the buyer’s agent’s commission. Unless you have flipped many houses, a FSBO might be more complicated than you want.
Minor renovations add value
Know your market and understand what improvements are going to offer a good return on investment. The impact of an upgrade depends on where you are and your current home value. Instead of tackling big projects, focus on small cosmetic repairs that can help increase the selling price.
Negotiate for the best offer
Remember that the highest offer might not be the best offer. Most offers will include contingencies, so carefully review all terms of any offers you receive. Some common contingencies include financial contingencies, home sale contingencies, and inspection contingencies.
Keep in mind that the best way to max out on your profits is to understand your local market trend. While it might seem lucrative to handle a FSBO sale of your property, the reality is that an agent can help you navigate the market and avoid these common mistakes.