Monday, July 26, 2021 / by Tracy Lockenour
Every home seller wants to maximise their net proceeds and sell their home at the highest value possible. However, it is easier said than done. Negotiation is common between buyers and sellers but the potential it provides for net proceed maximisation for the seller is often limited. This is when you, as the seller, must look for ways to boost your property value on top of negotiating with your buyer.
In this post we give you 8 ways to boost your property value and sell it for a higher price. If you are looking to get the best deal selling your property, this blog post is for you. So without further ado, let’s begin.
Listing Price Research
There are a number of factors that can affect the price of a property. The location, quality, and size are all characteristics that will determine the worth of a property. Look into what a first time home buyer is looking for.
The most significant factor to consider in determining the price for a home's market value. Market value is typically calculated using comparable properties that have sold in the area and how long they were on the market before they were sold.
After finding an accurate listing price, you should also research your competition to see what prices you can realistically list your property at and still be competitive in your local market. It is always best to look into the seller's net sheet for detailed information about your net proceeds.
Cost of Selling your Home
Homes are a significant investment for people. This is why it is important to consider the cost of selling a home before you take the leap and buy it.
The average cost of selling a home in the United States is between $8,000 and $20,000. In some areas, it can be up to $60,000. The cost will vary depending on your location and what you need to do with your property before you sell or lease it.
Some of the most common costs include:
- Fees for an agent
- Home staging
- Repairs and renovations
- Cost of moving out
When to Sell Your Home?
We are heading into the fall season, which will soon turn into winter. Is this the best time to sell your home? If you are unsure, here is what you need to know.
The best time to sell a home is during the spring and summer seasons. Home values tend to be higher during these seasons, which means more buyers will be interested in buying your property. It is also worth noting that most people buy properties in the spring and summer so there will be more homes for sale as well.
Hire an Agent
Agents are professionals with knowledge of the real estate market that can help you find the most beneficial price for your home. Agents are also skilled in understanding different home selling strategies and can work with you to design a plan that best suits your needs.
The agent's other responsibilities include working with clients to determine their budget and desired location, advising on appropriate pricing and negotiating contracts, coordinating showings, hiring contractors for repairs, and overseeing the final walkthrough to ensure everything is set up for a successful sale.
First of all, agents must know all about home sale strategies so they can give you the best advice on what will work best for your situation. Agents also know when it is time to switch strategies if an offer does not come quickly.
Repairs and Renovations
While a home inspection is always a good idea, there are some quick and easy repairs that anyone can do to make their house appear more valuable.
- Change light bulbs: Buyers will see this as an indicator of how well you care for your property.
- Fix peeling paint: This is both a cosmetic problem and an indication that the house may be old and need repairs.
- Clean up clutter: Displays, furniture, or just stacks of papers and boxes can make the space look dirty or cluttered.
Save Closing Costs
There are many ways that sellers can save on closing costs. Sellers can get an FHA mortgage to avoid the traditional mortgage process. They can also keep their initial down payment to a minimum and use the proceeds of the sale to cover the down payment.
One way that sellers can save on closing costs is by getting an FHA mortgage. This type of loan would help them avoid the traditional mortgage process, so they could forgo a traditional appraisal and more costly underwriting fees. Sellers could also keep their initial down payment to a minimum and use the proceeds from the sale of their previous home to cover it. It is also advisable to calculate title insurance cost since it is a negotiable cost component a lot of time.
If you happen to live in NY, then you can allow the buyer to go for a CEMA Loan. CEMA loans allow buyers to save a lot of money on closing costs in NY which can make them go for sellers who allow CEMA Loans.
Creative Open House Ideas
If you are selling your home, it is a good idea to have an open house.
Having an open house can be a great way to boost the property value in your neighbourhood.
If you plan on having an open house, there are some things you need to do before and during the event so that it is successful.
Prepare before the event by making sure that your home is showing well and has some food ready for guests.
During the event, try to be hospitable and knowledgeable about your home. Answer questions from people who stop by such as what type of roof does it have or how big is the lot?
After the event, keep track of all potential buyers who came through and contact them when you find new homes for sale in their price ranges
Take Care of Contingencies
Purchasing a property is a major step in life. It is not only a financial decision but also an emotional one. This is why some people are hesitant to commit to this idea, and that's why contingencies are here to make it easier for them.
The two main contingencies that buyers want sellers to be aware of are the home inspection and financing contingency. The home inspection contingency means that if the buyer doesn't agree with the condition of the house after an inspection, they can walk away from the deal without any penalty.
The financing contingency gives buyers time to secure a loan before closing on the property so they're not left homeless if they can't get approved for a loan during their purchase process.No matter which contingency you go with, it should be handled between both parties ahead of time.
Hope you found the information useful to sell your home at a higher rate than anticipated.