Desire has no boundaries. It’s quite natural to think of making as much money as you can when you sell your house. Have you tried several strategies to sell your house and you are still not getting the best price? If so, then “How do you sell your house at a best price?” is becoming a very difficult question for you these days. Undoubtedly you will get lot of offers when you are ready to sell your house but you need to take care and be responsible for a few things that could influence potential buyers to choose your property for the best price.
Here, we not only need to discuss your understanding and familiarity with the location, house repairs and the existing economic conditions but also few more things that add up to making sure to sell your house for the most money.
Let’s take a look at the factors to understand the possibilities:
1. Understanding of Local Market
A lot of people fail to understand the significance of doing a local market analysis of properties that are currently listed for sale and those that have sold. Local market knowledge or analysis is an undervalued resource. In actuality, the market analysis is the most significant component in assessing how much you can sell your house for in your town.
Home price appreciation trends in your local market shows how long homes have been listed, and how much buyers are willing to pay for a home in the area. This will lead to your ability to negotiate things like offering contingencies. You can have a clear insight of how long it will take to sell your home adjusting your costs and benefits at the same time.
2. Predict the Right time to sell your house
Home deals constantly fluctuate with the seasons and are often carried by market situations. Spring commonly brings the most purchasers because more buyers need to move during the hotter months when the children are out of school. While occasional patterns differ by market, they aren’t the main factor to think about when considering “the ideal time to sell”.
Keeping in mind your own expenses and current loans on your home (if any), it is imperative to make sure that if you don’t sell your home during the time frame you anticipated that you can still satisfy your financial requirements and obtain a good profit.
3. Setting up a perfect price to buyers
Overpricing often leads to the risk of a longer time to sell your house and the longer it sits, the less likely you will get the price that you want. Furthermore, buyers begin to wonder if something is wrong with your home if it has been sitting on the market too long. Most buyers also search using a price range so if you price your home beyond what a reasonable person would pay for the style, size and location of your home, that will make your home harder to discover.
Remember, if it takes longer to sell your home, then it may have broader financial and even emotional consequences for you, especially if you must move, but did not want to start your new house search until your home is under contract.
4. How much does it cost to sell a home?
When you are selling your house you should account for 5-6% of commissions being paid to the real estate agents. Upon summing up all other expenses like-maintenance, repairs, closing costs, seller concessions and moving costs-the total expenses may be up to 10% of the total sales price. Some expenses are harder to control, like agent commissions and closing costs. However, it completely depends upon you how you prepare your house for sale and how you negotiate during the selling phases to lower other items that might eat into your profits, like repair credits, etc.
5. Keep note of doing valued renovations at minimal costs
Not every home improvement project gives you a return for the expenses paid. You should research and look for project that will create more value at a minimal expense.
There are many ways for homeowners to approach remodeling projects and even more ways to analyze the projects’ successful outcome. When consumers remodel, it is to upgrade worn-out surfaces, finishes, and materials (38 percent); to add features and improve livability (17 percent); and because it is time for a change (13 percent).
According to National Association of the Remodeling Industry (NARI) Cost Survey, about 57 percent of realtors have suggested that among all US households 24 percent of the respondents were interested to go for remodeled kitchen because most realtors believe that a remodeled kitchen 67 percent more value to appeal for resale. While upon updating the Master Suite/Owner’s Suite, the percent of expected value recovered from it is 53 percent. Upgrading the worn-out surfaces, finishes and materials that make you feel a better sense of accomplishment before the selling of your house has a recovery percent of almost 97 percent of total cost involved. The approaches to make the exterior part of your property ready for sale, most realtors suggest renovating or remodeling the roofing, garage door, vinyl siding, and new vinyl windows for a highest recovery from your expenses.
The impact of a project or upgrade varies based on the market you’re in, and you’re existing home value. Some projects like adding a pool or wood floors tend to have bigger increases for more expensive homes, while projects like a kitchen remodel or adding a full bathroom tend to have a bigger increase for less expensive homes.
6. Negotiate the best offer not just the highest offer
We all want to grab the highest offer in hand we receive for our house, especially if it’s more than your desired or asking price. Remember, never jump into an agreement without knowing the terms. Many offers include contingencies, which are a set of terms in your contract that allow the buyer to cancel the agreement if those terms aren’t met.
Here are a few examples of contingencies a buyer might include in their offer:
- Financing contingency
A financing contingency allows a buyer to cancel their offer if they aren’t able to qualify for a buying a property. If you accept this contingency as a seller, you might run the risk of wasting time by having to reevaluate your home and start the ongoing selling process all over again.
- Home sale contingency
The home sale contingency is a perfect way for a buyer to make sure they will have their house sold before they are required to purchase your house. The risk here is that the buyer’s timing doesn’t align with yours or the buyer isn’t able to sell their home, giving them the right to walk away.
- Inspection contingency
The inspection contingency provides a way for the buyer to negotiate for repairs, ask for an extension of the closing date, or even rescind their offer if the home inspection turns up any major issues that weren’t disclosed. This is a common reason why pending sales fall through.
In greater known markets or hot markets for real estate selling and purchase, it’s common for buyers to waive contingencies as a way to have an edge over other buyers who may have a higher offer price. If there’s not a lot of competition for your home, buyers may ask for more contingencies since they run a lower risk of their offer not being accepted. Based on the contingencies included, the highest offer may not yield the most money, especially if the timeline for closing doesn’t align with yours and there are a number of contingences.
Always remember, to maximize your net proceeds, it’s important to understand local market trends, and how they will impact how much you can sell your house for in your town. Overpricing your home can have direct financial consequences, and under pricing can leave money on the table.Keep in mind, the highest offer isn’t always the best offer. It may include contingencies which impact the amount of money you take home after the sale.