In order to sell your home for the most money, it is best to know the local trends in your market, the total cost of selling a home and the best-selling method to achieve your goals. The highest supply does not always bring you the most money, and you cannot always recoup the cost of major renovations.
Also Read: Mistake you should avoid when selling a property
Here are 4 things you should consider to sell your house for the most money:
Understand Your Local Market.
If more houses are for sale than buyers, prices are usually lowered as sellers compete for fewer buyers. We often call this a buyer’s market. On the other hand, if there are more buyers than houses for sale, prices tend to increase as shoppers compete for fewer houses. We call this a sellers-market.
A good way to judge if you are in a buyer or seller market is to find the average market days for similar properties in your area.
DOM is a property statistics that shows how long houses are actively listed on the market. If similar properties like yours sell faster than the average DOM for your region, this may indicate strong demand.
You may also want to determine the value added for homes in your market. The revaluation of home prices shows how quickly home prices are rising. A sharp rise may signal that buyers are paying more.
Set The Right Price
If you’re overpriced, you risk lowering the price, taking longer to sell, or making it harder for buyers to find what you have to offer. Over time, buyers may become skeptical of homes where list prices are falling steadily; suggesting something is wrong with the house or the seller has unrealistic expectations. This may limit your bargaining power, as buyers may see the trend as a sign that your home should be discounted.
According to Homelight, most buyers are looking for a price range. So, if you offer your home at a price above what a reasonable person would pay, it will be harder to discover your home.
Finally, a longer sale term can have bigger financial consequences, especially if there is a pressure to move within a shorter timeframe. Even if you can sell, for example, at the desired price, housing overhead costs may be incurred. You may also miss a good opportunity to buy.
A good starting point for home pricing is our home value tool, which uses the latest market data for comparable homes. Alternatively, you can request a cash offer from us. We calculate your home value based on the information you provide about your home, current market trends and data from hundreds of recently sold comparable homes.
Also Read: Red flags to look out for when inspecting house
Consider Minor Renovations That Add Value At A Minimal Cost
Not all DIY projects are created equally. For example, a finished basement in Portland is more valuable than a completed basement in Atlanta based on the data from our home improvement store 5x. This corresponds to an increase of the median house value of about 13% compared to 2.5%.
The impact of a project or upgrade depends on the market you are in and the value of your home. Some projects, such as the addition of a pool or wood floors, tend to grow at a higher cost for more expensive homes, while projects such as remodeling a kitchen or adding a full bathroom tend to have larger increases for cheaper homes.
It is important to consider the cost and estimated value of your home, as many larger, more complex renovation projects can be completed on time and result in more unplanned expenses. Focusing on minor updates that are not tied to individual tastes is a great way to improve your home and appeal to buyers.
When we carry out repairs to houses sold to us, our philosophy is to look for things that the next reasonable buyer wants to fix. These are usually elements that affect the safety, structure and functionality of the home.
Negotiate The Best Offer, Not Just The Highest Bid
It goes without saying that you want to get the highest offer for your home, especially if it’s above your price. But do not jump without reading the conditions. Most offers contain contingent liabilities that represent a set of conditions in your contract that allow the buyer or seller to terminate the contract if these conditions are not met.
Here are some examples of contingent liabilities that a buyer might include in their offer:
Financing need
A funding contingent allows a buyer to cancel his offer if he cannot qualify for a mortgage. If you accept this opportunity as a seller, you run the risk of wasting time by re-registering your home and starting the process from scratch.
House sale contingency
A home sale is a way for a buyer to make sure he gets the proceeds from his existing home before he buys your home. There is a risk that the buyer’s timing may not match yours, or the buyer may not sell his house, so he has the right to leave.
Eventual inspection
The review criterion provides the buyer with the ability to negotiate repairs, request an extension of the closing date, or even withdraw his offer if there are major issues with the house inspection that have not been disclosed. This is a common reason why outstanding sales fail.
In hot markets, it is common for shoppers to waive contingent liabilities to “sweeten” the business. If there is not much competition in your home market, buyers may ask for more contingent liabilities as they have a lower risk of their offer not being accepted. Due to the contingent liabilities involved, the highest bid may not generate the most revenue, especially if the closing schedule does not match yours.
For example, if the deal fails and you have to retire your home, you may be spending more money than if you had accepted a slightly lower bid with fewer contingencies. In our blog you will learn how to choose the best deal and how to weigh the various options when an offer is on the table.
Also Read: How real estate investors make money
Final thoughts
In order to maximize your net proceeds, it is important to know the local market trends and their impact on the price you can sell for. An overvaluation of your home can have direct financial consequences, and under-pricing can leave money on the table.
