The real estate market might fluctuate but one question that will always be there in the minds of those planning to sell a property is “how to get the most money for your house?”.
So, if you have decided to put your house on sale, it is important to know how profits can be maximized. This can be done by understanding the factors that influence the final price for home sales.
The most common perception about home prices is that they are dependent on market conditions and the location of the property. While this is true to a certain extent, several other factors have an impact on the selling price of a property. The interesting thing is, most of these factors are under the control of the seller.
In this article, we will talk about some of those factors and how you can increase your profits by making changes in the way you approach your home’s sales.
Market Conditions and Location
Market conditions and the location of property influence its price. When it comes to market conditions, we look at two things: supply and demand. Can you guess which one sets the price? Yes, if there are more buyers for properties than supply, a higher price is expected. On the contrary, if there are more properties on sale than fewer buyers who want them, prices will go down. This can be attributed to basic economics where lower supply leads to higher demand and vice versa.
Working with real estate agents – better negotiations
One of the first things that you can do to ensure that you get top dollar for your home is to work with the right agent. Qualified real estate agents have experience in selling homes in your local market and know how much buyers would pay for a property like yours. The best real estate agent has access to multiple listing services that allow them to effectively market your property in your area. A good agent also has access to historical data about comparable homes, asking price in the neighborhood that was recently sold, and can give you an idea about how much buyers would pay for a similar property.
A good real estate agent may even be able to negotiate a better price for homeowners if they can create competition among several interested buyers.
While it is possible to sell your home without hiring a real estate agent, you can sell your house for cash without any hassles. By selling your house for cash you can manage your personal finance to obtain the right price for your home.
What should you do if you don’t want to hire a local real estate agent?
What if you don’t want to hire a local real estate investor
You’ve made the decision not to hire an agent and it is okay because there are other alternatives. Many people have been successful in selling their properties. But remember to do your homework and look for houses that are well-marketed based on previous home sales. Because most house prices include an agent’s commission, your pricing may wind up being lower in the end.
Recognize your local market trends.
As sellers strive to find fewer individuals to buy their properties, the price rises as the number of residences on the market grow. It’s also known as the buyers market. On the other hand, when more individuals purchase properties than sell, prices might rise since most buyers are vying for fewer homes to buy. It’s known as the seller’s market. You can also see how long similar residences in the area have been on the market on average. The DOM statistic indicates how long a residence has been on the market. It might indicate significant demand if similar houses sold faster than typical DOMs in your region.
Find out your prospective buyers
Various sorts of homes appeal to particular purchasers, each of whom is looking for a different style of property. Knowing what you want from the target buyer will help you sell your home quickly. A move-in ready home, for example, may be required by a buyer looking for a low-cost, well-maintained property. Those who buy properties do not want to undertake repairs, therefore investing time in repairs is a good idea. A home in bad condition will never be eligible for a regular bank loan.
Check the type of buyers and their demographics in your location. They can be entry-level, family-based, mature or second-time, leisure, investment, and high-end buyers. It is always recommended to sell your house to trusted home buyers who can make your home selling experience worry-free.
Make it on time: Winter and holiday season
Timing can make a huge difference in how much more money you get for your house. The weather has a significant impact on home sales as well as holidays. Selling during the spring when it is still cold outside may make it more challenging for active buyers to visualize living in your house. Waiting until spring has sprung and temperatures are more comfortable may be more beneficial to your listing. Hosting an open house during the fall months could be less appealing than hosting one when beautiful flowers are blooming everywhere in early spring.
As per Ryan Fitzgerald, owner of Raleigh Realty “You want to sell a house when inventory levels are at their lowest and buyer demand is at the highest,” Selling during what online real estate site Zillow calls the “magic window” can boost a sales price. For example in the holiday season apart from low inventory, people tend to be less likely to ignore the warm, cozy, and inviting feeling of the holiday season at your house.
Ensure your maintenance schedule is up-to-date.
Slowing down basic maintenance can pose issues, especially when life gets hectic. Repairing or replacing the roof and HVAC systems regularly, on the other hand, may assist to raise the house’s worth when it comes time for a home sale.
Conduct a seller’s home inspection
Conducting a home inspection is not a deal-breaker. A home inspected by an expert inspector gives confidence to both the buyer and the seller. It enables the seller to have a chance to correct problems before a home’s sale. The seller can potentially sell the home for the most money if it is in perfect condition.
You can also use a good home inspection report by a certified home inspector as a market tool to attract potential buyers. And if the report is not good you can get the upgrades done before the buyer’s inspection.
Prepare your property: Repair and Upgrade
Never underestimate the power of curb appeal people always go where the grass is greener- Darla McConnel
So if the grass at our end is not greener, we can make it greener!
Sellers who are getting ready to put their homes on the market should consider doing some minor repairs and upgrades to increase the value of their property. The good news is that the most visible repairs and upgrades can be done on a budget, and they will help your property sell much faster.
· Replacing or aligning old doors and windows
· Painting the interior and exterior of the house
·Landscaping, and cleaning up the yard, deck, vinyl siding, and, patio with pressure washing are all types of repairs that can get a great return on your investment.
Renovation: increase utility
Home improvements can give your home value and ensure that you get top dollar when you do sell. Here are some things to consider when renovating:
Re-paint
Painting the interior and exterior of your house is one of the cheapest renovations you can do, yet it also provides one of the finest returns on investment.
Most sellers don’t know how much harm their walls have taken until they apply a fresh coat of paint. New paint brightens interiors, covers flaws, and quickly refreshes and cleans a place.
Painting your interior may yield a significant return on investment, but it may be even more beneficial if the colors in your house are uncommon. Colors in most people’s houses are personal, yet they should be transitional and appealing to a wider audience. Do not forget to remove any existing wallpaper.
Increase the size of your home
If you’re willing to make a larger investment, expanding your house — or making additional portions of your home livable — may be a game-changer.
“The quantity of habitable square footage determines a home’s value,”
Upgrades that add square footage, such as completing a basement or converting an enclosed new deck into a sunroom, are always the best bang for your most money.
These additions may be very expensive, and you’ll get the maximum value from them if you’re putting your home in line with your neighbors rather than trying to outdo your neighbors. If your home is the only two-bedroom in the neighborhood, it may be difficult to sell it without minor remodeling.
Remodel your kitchen:
Does your kitchen need to be updated? Since kitchens are a place where people spend a great deal of time, updating this area can help you get the most money for your home. The kitchen is the key area in giving your home an instant facelift. You can replace the hardware, change the granite countertops and upgrade the appliances, check out the doorknobs, cabinets
Beautify your bathroom:
If your bathrooms need updating, here is another area where improvements may make a great difference. Bathrooms are the second most important selling element in most homes, after kitchens.” If you nail this update, you’ll be halfway to the closing table!”
Re-grouting tile, removing and replacing caulk around the shower, tub, and toilet areas, and maybe replacing the toilet or basin for a more efficient and modern aesthetic are all options. Replacing mirrors, plastic tubs, and fixtures will improve the look and feel of the bathrooms significantly.
Upgrade the flooring
Carpets are both attractive and harmful, and people with allergies may be at risk. Hardwood is the most popular choice. In hot regions, ceramic tiles are a wonderful option, but laminate flooring provides a premium appearance without the high expense of hardwood.
Replace existing hardware
New hardware such as doorknobs, cabinet pulls, and knob handles may have a significant impact on a tight budget. It will be the most effective method of selling my home. When chosen with a sense of whimsy, small details may contribute to the home’s appeal.
Adding finished space, such as extra bedrooms, installing a deck or patio, ceiling fans, or a home office set up where work from home is the new normal, can greatly increase the value of your home.
If you are planning on doing renovations before selling your home, it is important to make sure that the work is done by a licensed contractor and that all permits are taken care of. This will ensure that everything is up to state code and that there will be no surprises with inspections later on.
Stag at least a room or two
According to the Motley fool site, staging can make a big difference both in marketing your home and pricing it. According to the Profile of Home Staging report from the National Association of Realtors, buyers’ agents largely agree that staging impacts the dollar value of a home’s offers.
Keep it clean and decluttered:
Most buyers can envision themselves in the area, something they would be unable to do if your home is in chaos. Cleaning your home from top to bottom, including window panes, doors, floors, and getting rid of clutter, and hiding family portraits and other personal items like trophies, photos are all good ideas. As a crowded room appears to be small.
So you can rearrange the furnishings while you’re at it so that your house appears inviting and buyers can wander about without bumping into anything. Put bulky items in storage if necessary.
Consider hiring a professional cleaner and/or stager to help you highlight your home’s greatest features, impress potential buyers, and sell it as fast as possible for the best price.
Have sufficient insurance
Your home owner’s insurance will be required by your lender. If you don’t have insurance, be sure you’re protected if a viewer gets wounded and seeks compensation for your losses. You should also take care not to create any obvious risks at the venue, such as keeping your children out of the pool and bringing your pets outside to display.
Install smart home technology
Installing smart home technology can help your home sell quickly, but you’ll need to pick the most popular systems to make the best first impression on potential buyers. Here are three of the most popular smart home technology systems to consider installing before your house hits the market.
Digital assistant
A digital home assistant provides individuals with the assistance they require to get through their hectic days and nights. This high-tech system can handle everything from grocery lists to shopping orders. Audiobooks, sports broadcasts, and music may all be played by the digital assistant to aid with home entertainment. The system is controlled by voice commands, making it simple for everyone in the family to operate.
Programmable thermostats
A programmable thermostat maintains a pleasant temperature in the house throughout the day. Many programmable thermostats come with an app that allows you to make changes while you’re away from home. With the proper settings, this sort of thermostat can even help you save the most money on your energy costs.
System of Security
A smart security system monitors the safety of the home by placing sensors and cameras in key locations around the home. The device is frequently controlled via an app, allowing for immediate monitoring of video and other warnings by family members. An intelligent smart security system may help you avoid theft, vandalism, and other expensive problems.
Set a reasonable price on the first time
If your home is underpriced, you may have to lower your initial asking price, wait longer to sell it or, make it more difficult for others to locate it. A buyer may feel suspicious of a house whose list price remains low, implying that there is a problem or that the seller’s expectations are unmet. If buyers see this history as a hint that your home requires poor sales, it may restrict your negotiating power. The bulk of purchasers search using price ranges, so if you price an apartment below what a typical homeowner would pay, it will be more difficult to find. Also if your home is overpriced it will be difficult to attract buyers and even if they come to visit, after the visual inspection your house can get easily rejected before the proposal. Therefore an adequate balance in pricing strategy makes sense to the buyer. After all, it all comes down to figures.
Add good quality photos while listing
Many seller home postings have such poor sourcing that your offering will stick out to a bidder. A buyer must present an excellent photograph, that is clean and clear. It should be shot at night in natural light. It’s critical to promote your property as the most precious asset it has. If feasible, consider utilizing an angled camera to allow potential purchasers to see everything.
Some apps let you create 3D views and the digital history of your home that includes photographs, maintenance records, and a warranty. It will make your home stand out on online platforms.
Be open to communication.
Sometimes selling a house has less to do with the actual property and more to do with how you communicate with potential buyers, He recommended that if a buyer wants to close on a specific date, you figure out a method to make it happen. Consider incorporating an item in the offer if a buyer falls in love with anything in your property.
Buyers can afford to be selective when there are several real estate options, If you are difficult to deal with and there is another house on the list with a more motivated seller, waiting for the buyer.
Make the Offer More Attractive
Offering something to sweeten the sale is one other alternative method to make the house and agreement more appealing. For example, you may present multiple offers to cover some or all of the closing fees. Buyers are seeking a bargain, especially in a depressed market, so do everything you can to make them feel like they’re getting one.
A transferable home warranty, which provides subsidized repair and replacement services for household equipment and systems, is another suggestion. A potential buyer may feel more at rest knowing that the property is safe, making your home more appealing than a competitor’s.
Final Thoughts:
The process of selling a property can be daunting, especially if you’re working under a deadline. There are methods to speed up the process, whether you need to sell quickly due to a new job, a life event (such as a divorce), or financial reasons.
If you are ready to spend more money then give your home the luxurious look that more potential buyers cannot ignore. On the other hand, if you don’t have a lot of money to spend on getting your house ready to sell, concentrate on the initial impression or make the deal more attractive. Buyers can decide in a matter of seconds—a few seconds from the curb, and a few seconds from the front door. Make the most of your time with a neat yard, a spotless house, and, if you can afford it, a fresh coat of paint.
