Selling your home can be difficult even in a seller’s market. Buyers want the best possible home for the best value, and it’s hard to compete with properties that offer the buyer more. Often, your property is competing against nearby properties that are hoping to take advantage of the same market you are. When this happens, your home can languish on the market if you don’t accept a lower offer.
If you want to make the most money when selling your home, you’ll need to plan ahead and invest the time and resources to improve your home’s value to buyers. Additionally, you’ll need a selling plan. However, it’s important that you consider the time and money you’re spending on the property when calculating your potential profits.
Make a Mini-Investment Into Your Property
Most buyers want a move-in ready home, so seeing work that needs to be done on the home can turn buyers away. This can include everything from damaged cabinets to an outdated wallpaper pattern. Your home should be picture perfect both outside and inside.
- Make small upgrades like a fresh coat of paint, new appliances, or new fixtures.
- Outdoor projects that improve curb appeal are a great way to draw the buyer’s eye. Buy a stunning new front door, do landscaping, or put a fresh coat of paint on your home.
- Complete any needed repairs, such as replacing a broken light fixture.
- Avoid major investments like gutting your kitchen or bathroom, as they may not appeal as much to buyers.
Know the Appraisal Value of Your Home
Work with your Realtor and an appraiser to determine the value of your home so that you know how much you can expect from buyers. If someone makes an offer that is above the value of your home, most lenders will not finance the balance, so you can also use this information to choose between bids.
- Talk to your Realtor to find out how much comparable properties sold for in the past few months.
- Consider paying for an appraisal if you think your property value may vary from the homes around it. For example, your home may have special features like an outdoor living space.
- Remember that a bid above the value of your home is only meaningful if the person has the cash to cover the balance. A cash buyer may be a good option for more profits, especially if the home needs a lot of work.
Plan Where You’ll Move After Selling Your Home
If you don’t have a place to after the sale, you may not be able to accept a good offer. This can put more pressure on you to either reject a great offer or delay accepting it for so long that the buyer backs out. Knowing where you’ll go in a pinch can pad your bottom line.
- Ask a family member if you can stay with them temporarily.
- Consider renting a small apartment, condo, or house for a short period after the sale.
- Add a contingency on the sale of your home that the buyer lease it out to you for a period after the sale, such as two months. In a hot market, they may agree.
Consider a Cash Buyer as an Alternative to Big Investments
Getting the most money out of your property can require a major investment of time and money. To compete in the market, you may need to make many repairs and cosmetic upgrades. Additionally, it can take a while for a good offer to come, delaying your fresh start. Why waste time and money on your old home when you can sell to a cash buyer right away? Home investors will buy your property as-is and make the needed repairs for you.
When selling your home, it’s important to consider all of the pricing factors, including what you have to spend to sell it. Sometimes it’s better to make a quick cash sale rather than investing in your home and letting it languish on the market.