If you want to ensure that your home sells for the best possible price and avoid common pitfalls, make sure to read this guide before placing a “For Sale” sign in your front yard. With these helpful tips, you can easily maximize profits when selling your house!
Know the Housing Market Ebb and Flow
Decoding the real estate market can be tricky, but when it comes down to it there are only two categories: seller’s markets and buyer’s markets.
Seller’s Market
In a seller’s market, you can earn more when your property is sold since there are more buyers than homes. Studies by housing economists suggest that these types of markets last an average of 15-16 years!
You will likely have various offers to select from and can avoid having to give many concessions in order to find suitable purchasers.
The latest Housing Market Index, a much-followed measure that measures the outlook for residential sales, dropped to 33 on its 100-point scale in November of 2022 – its weakest level since the dismal first month of the pandemic. Anything below 50 is seen as an unfavorable sign.
Buyer’s market
When the number of homes for sale exceeds the number of buyers, it can create a buyer’s market that typically lasts two to three years.
During this time frame, prospective purchasers have increased bargaining power, allowing them to request additional repairs and upgrades or ask sellers to pay their closing costs if they are acquiring financing.
Consequently, vendors must take extra measures in order to stand out from other properties on the market and may need to accept lower prices or wait longer until they find an appropriate buyer.
Relocation Timing
It is important that you have a strategy for where to go after your house sells, especially if you are planning on using the money from it towards purchasing another home. This may appear like common knowledge, but having an idea in mind will make the entire process smoother and less stressful.
To ensure a smooth transition to your new home, it is imperative that you develop a plan for timing the purchase and sale of your old one. This should include:
- If your current home sells before you are able to close on a new one, temporary housing is an excellent solution.
- In case your current home doesn’t sell before you purchase a new one, bridge or piggyback financing can provide an ideal solution.
- Rent-back: You may need to pay rent to the person who buys your home for a certain amount of time.
Making Your House “Sale-Ready” (The Hard Way)
If you’re hoping to reap the highest return from your property, it’s important that you make sure it stands out against other recently constructed homes.
To guarantee your home is in impeccable condition for potential buyers, take these steps:
Declutter to Make the House Look Bigger
Free up as much space as possible to give potential buyers a glimpse of ways they can personalize their new home. If it is filled with your stuff, the home will appear smaller and could cost you its sale.
Depersonalize your Living Space
The sight of a pink, blue, and yellow-hued room can be quite distracting to prospective buyers. When you have objects such as sports memorabilia or personal items in plain view, it stops potential buyers from picturing their own things there. To ensure the best chance for success when selling your home, use neutral paint colors on the walls and keep all trinkets out of sight.
Smell Check (from a friend)
If you’ve become accustomed to the smells in your home, potential buyers may not be as forgiving. To make a positive impression on visitors and sweeten the deal for prospective buyers, consider bringing out a fresh coat of paint.
You can also deep-clean your carpets. Especially where pets tend to frequent. Use a dehumidifier if there’s any mustiness lingering in basements or other areas of the house. A pleasant scent goes a long way!
Curb Appeal
Buyers might be turned off by a house with dull paint, grimy windows, and unkempt weeds, or they may even refuse to enter. If they do decide to make an offer, it may be much lower than the asking price if they assume that the interior has been treated as badly as the exterior.
Keep it Lit
Let in natural light by opening windows and turning on lights – this helps potential buyers picture how their objects will fit into the space. Plus, neglected lightbulbs can give off an impression of negligence to house hunters – so be sure they are replaced!
Stage Your Rooms Professionally
With a few strategic investments, staging can not only help you make more money on your sale but could also speed up the process of finding buyers.
Staging involves arranging furniture and accessories to show the best features of each room. Professional stagers can make sure that your home looks inviting, functional, and spacious even if it’s not as large as some of its competitors on the market.
These are just a few tips that you should keep in mind when selling your house. With proper planning and preparation
Pre-emptive Inspection
An in-depth home inspection gives you more than just the basics – it provides insight into both visible and hidden elements of your abode. From solving easy-to-manage issues, like nicks on the walls or spots on the carpeting, to uncovering looming parts problems with components such as air conditioning systems, water heaters, roofs and more – a meticulous inspection is essential when buying or selling a house.
Selling Your House (The Easy Way)
There is an option that is often overlooked when selling a house. You can use a home-buying service. A home-buying service, like a cash home buyer, will buy your house for cash, in as little as 7 days.
Home buying services are ideal for those who need fast cash quickly and don’t want to wait months to close on the sale of their house.
As-Is
Home buyers can purchase the property “as-is,” meaning they don’t require repairs or cleaning before buying it. This gives more control to the seller and allows them to receive cash quickly without having to do any of the work associated with selling a house – like decluttering, repairs, staging, or even just waiting for the right offer.
Cash is King
In addition to fast cash and convenience, home buyers can provide relief from rental payments if you’ve already moved and the house is vacant. This can help you avoid additional costs associated with renting out your home, like maintenance fees or tenant issues.
Hassle-free
Home-buying services are a great alternative to selling a house on the open market, as they offer a quick solution while still giving you control over the sale of your property. Whether you need cash quickly or just want the convenience of selling your house without the hassle, a home-buying service may be the right option for you.
Big No-nos
Resist the temptation to over-improve your home. Look up the latest Remodeling Cost Versus Value Report before diving into a major kitchen or bathroom renovation. Instead, allocate resources for repairing essential day-to-day features such as water heaters and appliances that you use every day.
Find a “Good” Real Estate Agent
If you are insisting on paying real estate agent fees and using banks to facilitate your home sale, keep reading.
An experienced real estate agent will stay updated on the unique features of different neighborhoods and create a network with other agents to locate qualified buyers.
Furthermore, they are seasoned in deciphering the complicated legal language of purchase contracts while overseeing all aspects related to getting your house sold – from tracking deadlines to understanding any potential complications that may arise during the process.
Don’t Hide Known Issues!!!
Don’t shy away from disclosing any issues in your home to your real estate agent. Failing to comply with seller disclosure laws can have serious repercussions, so it’s best not to risk them by attempting to hide anything that could cause you legal troubles.
For Sale By Owner?
If you’re looking to save on paying real estate agents the typical 5-6% commission, selling your home as a “For Sale by Owner,” or FSBO may seem like an appealing option. It’s important, however, that you have both enough time and knowledge of local regulations to adequately market your property and negotiate offers with potential buyers.
From June 2020 to June 2021, selling a home without an agent did not reap the rewards that sellers had anticipated. On top of that, all the headaches of having to stage, show and list their houses came along with the process.
Set Your Price Appropriately
When pricing your home, you must take every detail into consideration. If it is set too high, potential buyers might skip over the listing altogether; however, if it’s priced too low they may pass up on viewing it under the impression something could be wrong with it. Your price point speaks volumes about your property and should reflect its true worth.
When it comes to selling your home, real estate agents have the know-how and foresight of local housing markets to aid you in obtaining a competitive price. According to the National Association of Realtors (NAR), homeowners who enlisted an agent sold their homes for a median of 99% of their desired asking price.
Using a Home Buyer to Evaluate Your Home
Home Buyers will know exactly what your home is worth and be able to make you a cash offer that meets or exceeds the current market value. Additionally, when selling with a home buyer, you don’t need to pay agent fees set at 6% of the closing sale price.
They can prepare a comparative market analysis (CMA) that analyzes recent sales of nearby properties with features similar to yours.
A “comparable” home is usually one that:
- Located in a community that closely resembles your own, right near home.
- Recently listed or sold within the past quarter
- Approximately the same age as your abode
- Similar Sq. Footage
- Similar features (upgrades, pool, amenities, etc…)
Showings, Showings, Showings
As open houses are reemerging in the post-pandemic world, limited inventory has caused buyers to lean more toward virtual house viewings. That’s why it is imperative to make sure that your online listing accurately displays all of your home’s assets!
Buyers nowadays will most likely find you through an internet search, so ensure your digital presence emphasizes the bells and whistles of what makes your residence unique.
Review offers carefully
Although the price may be a major factor in selecting the “best” offer for your home, it is not the only consideration. All-cash offers can mean quicker closing times than those made with financing, even if the buyer has preapproval for a mortgage loan.
Still, resist any temptation to ask for higher prices when you receive an appropriate full-priced offer; declining such an offer and seeking another one could cause you to have longer wait times before selling your house as prospective buyers become discouraged by too high of counteroffer expectations.
Understand Timelines
If you find a cash buyer, you may be able to complete a home sale in one to two weeks.
It’ll take longer to close if your buyer needs a mortgage. Don’t let tedious wait times prevent you from obtaining a loan for your dream home!
- FHA loan: 52 days
- Conventional loans: 46 days
- VA loans: 53 days
With these long turnaround times, it may be your best bet to find a cash buyer that can close fast.
Conclusion
Selling your home doesn’t have to be a daunting task; with the right preparation and due diligence, you can get the job done efficiently and reap rewards in no time!
With these tips, you will be able to navigate through the entire process of selling your home.