If you’re like most people, you’d like to get as much money as possible when you sell your home. You’d be crazy not to want that, right? To maximize profit, one of the biggest steps you can take is to research and comprehend the latest trends in the housing market. Ultimately, just because you’re getting what appears to be the highest offer, doesn’t mean you will be left with a lot of money in the end. For instance, if the highest bidder puts in their offer but then requests that you make certain repairs before the sale closes—the cost for said repairs will come from your pocket.
Another key component to selling your house for the most profit is timing. Believe it or not, just because you can sell a house at any time in your life, that doesn’t make that time the right time unfortunately. Let’s look at the COVID-19 Crisis. This is an exciting time for the real estate industry—if you’re a homebuyer! Selling a home during the pandemic has proven to be quite stressful for a lot of homeowners. Of course, this is up for debate depending on who you ask as some real estate gurus claim that COVID-19 has created a hot market for those wanting to sell a home.
In the end, a fairly significant portion of selling a home—regardless of repairs or timing—boils down to sheer luck and happenstance. The important thing is that you generate some sort of profit from the sale. Keep in mind though, the IRS may require you to pay a capital gains tax on that profit. It all depends on a few different factors. Ultimately, you will need a tax calculator to crunch the numbers. However, most real estate agents would recommend speaking to a financial professional to avoid any costly mishaps. Let’s not get ahead of ourselves though, we haven’t even sold the house yet. In this post, we will walk you through some other important factors to be mindful of when selling your home, all in an effort to ensure you make the most money possible when all is said and done.
Understand Your Market
In simple words, when there are more homes for sale than the number of buyers, the prices quickly come down. This is classified as a buyer’s market. On the contrary, when the number of buyers exceeds the number of sellers, this is referred to as a seller’s market.For your information, the number of days a property has been on the market is a real helper when you have to buy or sell a property.
So if you find similar homes being sold for a higher price, it means that now is the right time to consider selling your property. You might also have to consider the rate of real estate appreciation in your area before making the final decision. So unless you understand the trends in your local market, it will be hard for you to make the right decision.
Always Set the Right Price
If you have overpriced your home, the chances are that you will miss out on several lucrative opportunities. Over time, buyers are often skeptical about properties that are overpriced and eventually look for other options on the market. If you have attended a local real estate auctions, you will know that the properties aren’t overpriced or underpriced when buyers/sellers negotiate. After all, the purpose of the auction is to get a handsome price for the property. Therefore, conduct market research and try to identify the actual cost of your property. Once you’re done with this, you can contact a real estate agent who will help find a suitable buyer.
Choose the Right Time
Just because you have decided to sell your property doesn’t mean now is the right time to do so. Every season has a strong impact on the purchasing power of the buyers and their moods. While seasonal trends will always vary, they’re not the only factor one has to be mindful about. If you want to get the most money for your home, you might have to consider when you have enough equity aside to pay for the mortgage. Otherwise, you have to bear the extra expenses out of your pocket.
Understand the Costs behind Selling a Home
When you’re selling a home, it is best to settle for a fixate between 5-6% of the real estate agent’s income. After all, if you don’t have hands-on experience selling the property yourself, you will eventually have to consider the services of an agent in the first place. Bear in mind, when you settle for all the costs such as maintenance and repairs, seller concessions closing costs, and the home overlap costs, they will eventually sum up to 10% of the cost price of the house. Such costs are considerable and will force you to rethink the price of the house that you’ve set.
Some costs are controllable, whereas most of them are difficult to avoid. So depending on how much influence you have, you will eventually have to acknowledge all the hidden charges and the costs involved in the selling of the property.
Consider Minor Renovations
A home improvement or home renovation doesn’t mean that you have to splurge to get things done. For example, if you rely on home improvement and change the major parts of the house such as the kitchen, bathroom, etc., it will have a profound impact on the total cost of the house. It might not increase the price to a great extent but it will surely have a positive impact to some degree. Don’t forget that the impact of a home renovation is unmatchable.
Especially if you haven’t invested in the minor fixtures in a long time, now you must embrace them. After all, every penny you spend will bring you more money in the future. Consult a real estate agent and ask them to inspect your property. They will eventually identify the loopholes and give the best suggestions to make more money through selling them.
Determine the Different Ways That You Can Sell Your Home
Most people will run towards the real estate agent if they have plans to sell their home. After all, an agent has to go through the legal work of preparing the documents and also identifying any loopholes in the property. However, you can also check out the other methods that will help you get a good price for your property. If you haven’t advertised your property on social media, now is the perfect time to do it. Through this platform, your property will get wide exposure and attract massive buyers. So who knows if you could find a high-paying client through Facebook or Instagram.