Tips on Getting the Most Money for Your House

Written by Posted On Monday, 05 August 2019 19:25

If you want to sell your house for the maximum amount of money, you need to study local trends. Of course, the highest offer will not always give you the most money. Moreover, you will not always recover the expense of major renovations. Here are some tips that will help you to get the most money for your house:

Understand Your Market

When there are more homes than buyers, the price of homes goes down. On the other hand, when buyers are more than homes, the cost of homes goes up. To know where your local housing market lies, you should look at the number of days that most homes spend on the market.

Days on market is a statistic used in real estate to show how long houses remain listed. If you discover that homes like yours are selling fast, there is a huge demand for homes in your area. You should also look at the appreciation of home prices in your locality. These are the things that affect the way you price your home.

Sell at the Right Time

Home sales fluctuate with the seasons. Spring is a moving season because like to move during the warm months when children are out of school. If you are looking for people to buy houses Palm Beachfor instance, you need to consider the season.

You should sell your home when you have sufficient equity to pay off your mortgage and cater for the moving costs. Otherwise, you will have to cover these costs from your own pocket.

Set the Best Price

If you overprice your house, you might have to drop the price later, which means that it will take longer to sell. Buyers are usually skeptical when the price of a home keeps dropping – they start to wonder what is wrong with it. Moreover, setting high prices means that your negotiating power will diminish because buyers will think that your home can be sold at a discount.

You should consider using home value estimators, which make use of the most recent data to estimate the value of your home. Setting an unrealistically high price also reduces your chances of discovery because most buyers search by price range. When your house takes a long time to sell, you will face many financial consequences, especially if you have to move within a short time frame.

Understand the Real Cost of Selling a Home

Normally, people focus on the 5-6 percent that goes to realtor commissions. However, when you consider all the other costs – repairs, maintenance, closing costs, home overlap costs, and seller concession – it comes to around 10 percent. Just remember that you will have more control over how you negotiate and prepare your house for sale. Make sure that you have the full picture of the costs so that you can set a budget and make savings.

Determine How You Will Sell

Many people understand the traditional process of real estate: home preparation, finding a realtor, home listing, home showing, deal closing. However, you can also maximize your profits through an FSBO (for-sale-by-owner). In this case, you will act as a real estate agent.

With an FSBO, you will avoid paying the realtor’s commission. However, if the buyer is working with a real estate agent, you will most likely be required to pay his or her commission. In most cases, an FSBO is not worth it because it is complicated – do not attempt it if you are not a seasoned realtor.

Consider Minor Renovations

According to this architecture and design blog, Not all projects for a home improvement have the same value. For instance, a renovated basement in Portland is five times more valuable than one in Atlanta. The impact that an upgrade has on the value of your home depends on the local market as well as your home’s current value.

For more expensive homes, projects such as adding wood floors and swimming pools are more valuable. On the other hand, less expensive homes benefit more from bathroom and kitchen renovations.

Conclusions

To maximize your home sale proceeds, you need to understand the local market, set the right price, sell at the right time, know the real cost of selling a home, consider renovations, and figure out how you will sell.

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