When you sell your home, you always want to get the most money you can. To do this, you need to understand the market trends, the total cost of selling, and the best way to sell a house. Keep in mind that the highest offer doesn’t always leave you with the most amount of money, and you don’t always get all of the money you put into a major renovation.
These are the seven factors that can influence how much money you make from the sale of your home:
- Knowledge of the Local Market
- Selecting the Right Time to Sell
- Pricing Your Home Accurately
- Deciding on a Marketing Strategy
Know Your Real Estate Market
When there are many homes on the market, the prices go down as sellers have to compete for a very few people in the market to buy. This is called a buyers market, which means buyers have more room to negotiate and find the house they want more easily.
The other side of the market is when there are more buyers than sellers. It tends to make prices higher because there are fewer houses on the market. You can tell if you are in a buyer’s or seller’s market by looking at other homes on the market and determining how long they stay on the market without being sold.
You should also take into account the appreciation of homes in your market. It demonstrates the rate at which home prices rise and tell us when buyers are purchasing more homes.
Select The Right Time to Sell
Home sales fluctuate throughout the year. Spring is usually when there are more buyers because they can get out in the warmer weather to look at homes and move in the summer.
You also want to sell when you have made the most payments or have the most equity in the house. When you have equity in the home, you have enough money to cover all of the expenses of selling the home and have money left over for your new home.
Choose a time when you make the most for your home, even if it conflicts with other priorities like moving, a new job, or helping an aging family member.
Set The Price
Don’t overprice your home, or you will need to drop it, and it will take longer to sell. In addition, if buyers see your home on the market for a long time, they may grow skeptical and believe there is something wrong with the home.
Determine Your Marketing Strategy
Most people know the process where you list with a real estate agent, show the home and negotiate with the buyer but you can also go the DIY way and sell by owner (FSBO) or sell to a real estate investor. In the For Sale By Owner process, you take out the real estate agent and don’t pay the agent commission. However, if an agent represents your buyer, you may have to pay a commission if you sell the home.
On the other hand, the real estate investor uses technology and makes a purchase rather quickly, and finds buyers for the home. These are usually cash transactions, so they close very quickly.
Once you receive a good offer, negotiate to finalize the price. Hire a real estate attorney if you decide to sell the home yourself to ensure the contract is correct and close the sale at the agreed-upon price. If you use a real estate agent, he will take care of this process for you. Keep in mind that you will have closing costs and need to pay attorney fees or real estate agent commissions. So keep these fees in mind when you negotiate the price.