Monday, July 26, 2021 / by David Prulhiere
Home buyers and Sellers often end up negotiating a number of costs to get the best deal for themselves. Each of them just wants to increase their share of pie while shrinking it for the other. However, it should be like this, not for the seller at least. The seller can effectively do a number of things to simply boost their property value and get a fatter net proceeds at the end of the sale.
In this post, we are going to give you a list of 8 points that you, as a seller, can leverage to increase your property value and make the most out of selling your home. So without further ado, let’s get started.
Listing Price Research
Home listings are a tricky thing to research. Some properties are underpriced in an attempt to sell quickly while others are priced above market value and will take longer to sell. The best idea to go about pricing is by understanding what a first time home buyer might be looking for. Researching the listing price is important because it gives you a better understanding of the market for that neighborhood, which will ultimately help you determine what is fair to price your own home at.
Listing price research can be done in many different ways but it typically starts with looking at what other homes in the area have sold for recently. This can be done by looking at recent sales listings on sites like Zillow or Redfin, or by using a website like Trulia’s Instant Home Value Tool. If you have an MLS number, there may also be an option on those websites to pull up recent sales data for the address. You can also refer to the sellers net sheet to get an idea on the net proceeds you would be making and then reflect it on to your listing price
Cost of Selling a Home
The main costs of selling a home may be associated with the marketing and listing process.
The listing costs include the commission paid to the agent for listing your property, any professional photos taken for the listing, and any other expenses incurred during this process. The marketing costs cover all of the advertising, such as print ads in newspapers and magazines, internet ads on sites like Zillow and Trulia, open houses, or private showings.
When is the Right Time to Sell?
With the knowledge of your house's value and the market trends, you can make a strategic decision about when to sell your home.
There is not a strict answer as to what is the best time to sell your home, but you can use these five tips below to help you decide when is the optimal time for you.
- Check your mortgage balance
- Understand current market trends
- Research prices in comparable neighborhoods
- Determine if there are any renovations that need to be done on the property before listing it for sale
- Consider how long you plan on staying in this area
Hire an Agent
Real estate is one of the most profitable industries, but sometimes it can be hard to sell a property at maximum profit. Agents help you sell your home for the best price. Agents will also set up showings and appointments in order to showcase your home. They will also work with you to negotiate the best offer and terms.
Agents have many skills that will help you sell your home for more money. They know how to talk about your house in order to get buyers interested, they know what houses are worth in the area and they know how much similar houses have sold for on average. Plus, agents will have an understanding of how long each type of process takes so that they can help you through it all as quickly as possible without overpaying or underselling anything along the way.
Repairs and Renovations to Boost Property Value
Renovations to increase the property value before selling is done with the intent of making it appealing to potential buyers.
Some of the most common renovation projects are kitchen, bathroom, deck, or porch. These changes can make a house worth about 15% more than it was before the renovations were made.
Negotiate Closing Costs
Sellers can save the closing costs by doing the following:
- Prepay some of the closing costs, typically at least $1,000
- Get a loan from seller's bank or credit union
- Calculate the title insurance cost and try to negotiate that with the buyer
- Offer to pay all closing costs if buyer agrees to a higher purchase price
- Offer to pay a portion of the closing costs if buyer agrees to a lower purchase price
- If you are in NY, you can lure in buyers by offering to agree for a CEMA Loan.
Open House Ideas
The appearance of a home is the first factor that will attract buyers. It is important to keep it clean and tidy. Curb appeal can be greatly enhanced by adding touches of color, flowers, or a welcoming porch.
Make sure to remove clutter from the home as this will give it an uninviting feel. There are many ways to declutter your home without spending any money at all - for example, start by sorting through your closet and getting rid of clothes you don't need anymore; organize your bookshelf alphabetically by author's last name, or use storage boxes to stack books vertically on shelves or in closets.
It is also important to make sure that you have fresh air and sunlight in every room - open curtains and blinds during the day as well.
There are a few contingencies to avoid when selling your home.
The first one is not being clear from the beginning on what you want in a new home. It’s always best to have an idea of what you want so that the agent knows where to start looking for your perfect home.
The second one is not having an inspection done before listing your property on the market. If you know there are problems with your house, it’s best to get them fixed before listing them for sale so that they do not turn into bigger issues later down the road.
The third one is asking for too much money and not being flexible with the price. When we set unrealistic prices, we will end up selling our property at a loss instead of getting more money out of it
We hope you found the insights valuable. Happy selling!