Monday, July 26, 2021 / by Ron Eiseman
Selling a home is not easy when it comes to maximising the sale value. Sellers often want to see a certain minimum net proceeds in their closing disclosure and the only thing they can do is to negotiate with the buyer. However, price negotiation between both parties never
The answer is to boost their property value so that it could be sold for a higher price. If you are looking to sell your home and want to increase your property value, we give you a list of 8 things that can help you plan, strategize and effectively boost your property value for a higher sale
Listing Price Research
Some homeowners think that they can get a higher price for their house by listing it for less. However, this can be an extremely dangerous strategy and often ends up costing the homeowner more money than they would like to lose.
In order to avoid any confusion or problems, a potential seller should consider doing some research before deciding on a house listing price. It is advisable to look into the seller net sheet to get an idea on costs you could be incurring.
There are many factors that a first time home buyer could be looking for that contribute to the ultimate cost of a house; location, amenities, size and condition of the property are just some of them. The savvy home seller will take these into consideration before setting their asking price.
Consider the Cost of Selling
The cost of selling a house is going to depend on how much work needs to be done. The more work that needs to be done the more time and money you're going to need. There are many costs one has when they move, but the most important is the cost of selling your home.
This will primarily depend on your real estate agent's commission (typically 6% of the property value). You will also have closing costs, which typically range from 2-5%. If there are repairs that need to be done on your home before it can be put up for sale then you will need to factor in those expenses as well.
Decide what Time to Sell the Home
A buyer is more likely to buy a home in the summer because they are more active during this time. However, a seller might want to wait until Fall due to the higher prices and less competition.
This is a question of when you need your home sold the most because it will be the best time for you. For some people, they might need their home sold sooner and want to take advantage of high demand in Summer months. For others who can wait until Fall, they may want to do so because there are less homes on the market for sale and thus higher prices.
Seek Help from an Agent
Agents can be a big help for sellers as they are experts in the field. They know what needs to be done to sell their property and will provide the necessary guidance throughout the process.
Agents will inspect your property, set up a listing, and make sure that it is well presented on all the main real estate websites. They will also help you negotiate with buyers and make sure that you get a fair deal. Furthermore, agents are also experts in tackling any issues which may come up along the way, like scheduling repairs or dealing with difficult buyers.
Consider Repairs and Renovations
Updating your kitchen is the most popular renovation. It’s the most expensive renovation, but also the one that usually has the best return. On average, kitchens that are updated have a value increase of $7,000 to $12,000.
Painting is another popular home improvement project because it doesn’t entail much labor. Painting can be done by amateurs and usually costs around $2,500-3,500 for a full house of painting. It's also usually cheaper than other projects like remodelling a bathroom which can cost up to $6,000-$8,000.
Negotiate Closing Costs
Closing costs are the expenses incurred when buying or selling a home. They include commissions, title and recording fees, escrow fees, and miscellaneous charges for services.
Some of these costs are negotiable. Sellers can try negotiating with their real estate agent to lower the commission from 2% to 1%. They can also try to negotiate with lenders since there is no set percentage for closing costs. Additionally, they can also use a florida title insurance cost calculator to find out a ballpark cost for title transfer.
If you are living in NY by any chance, try and offer CEMA Loan to the buyer. CEMA saves a lot of closing costs for the buyers and they would be happy to consider your property.
Prepare and Conduct Open House Events
Open houses are one of the best ways to sell a home. In this article, we are going to share with you five simple, yet effective open house ideas that will help you boost home value. Here are a few tips to prepare for a successful open house event.
- Showcase your property's most valuable features
- List the benefits of living in your neighborhood/community
- Use social media to get the word out about your open house
- Encourage people outside your neighborhood/community to attend
- Include touch points at every level of the buying process
Be Informed on Buyer Contingencies
Sellers should be aware of the contingencies that the buyers can put in place. These contingencies can be at the request of the buyer or at the request of a home inspector.
Home buyers may ask for contingencies to protect their financial investment. They could for example ask for a home inspection before they sign an offer or they might ask for financing to be lined up before they commit to anything. These are protective measures that are meant to save them from making a mistake on their new home purchase.
This is something that sellers should take into account before they sell their home and agree on an offer.
We hope you found the points useful and applicable to your home selling mission.