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If you want to sell your home, it’s important to prepare in every way – and that includes avoiding pricey missteps. Selling a home involves various fees and costs. However, it also involves opportunities to maximize your profit. In order to have the best home-selling experience, avoid these costly and timely mistakes.
Not considering home-selling costs
There are many costs associated with selling a home. Prior to listing, remember to take into account the price of a pre-sale inspection and the listing agent’s fees. In addition, getting your home ready for sale may require repairs and/or staging.
After selling the home, there will be the remainder of the mortgage to pay, escrow fees, and property taxes. Additional taxes may apply to your unique situation, such as the capital gains tax. Finally, factor into your budget the cost of moving. You may need to hire movers, rent a moving truck, or find a storage unit during the interim period.
Not preparing your house for sale
While there will be fees and costs associated with moving, there are ways to guarantee your home is sold for its highest possible price. First and foremost: prepare your home for the market. Ordering a pre-listing inspection and discussing it with your real estate agent can help you decide what repairs will have the highest return on investment. As a result, the pre-listing inspection and repairs will often lead to a much smoother transaction.
Also, staging a home often results in the home being on the market for a shorter period of time. An expertly staged home instantly entices buyers, shows off the property’s best features, and helps them easily see themselves living there. Additionally, staging often leads to a home selling at a higher price point. The investment in repairs and staging can make a significant impact. A turnkey or move-in ready home drives sales. Sure, preparing to sell your home is an investment of time and resources, but it is a powerful revenue-generating task.
Not using a local real estate agent
A knowledgeable, local real estate agent can have a profoundly positive affect on the home-selling process. According to the National Association of Realtors, a good local Realtor will understand the specifics of the market you are selling in, have access to greater search power and offer objective opinions to maximize your home’s value. While some may try the “for sale by owner” approach, working with a local real estate agent offers many benefits. Utilize their expertise to maximize your efforts. A trusted advocate will have your back when it comes to negotiations, they’ll project manage for you, and you’ll have access to their network of excellent local vendors to get the job done right.
Not getting a CMA
One value a real estate agent can provide is a free CMA. A CMA is a Comparative Market Analysis. It is a comprehensive report that compares your property to others in the area. After walking through the home to get a general idea of its condition, the real estate agent will look at similar homes that have sold in your area. The agent will also consider local market trends and seasonal factors, as well as the location of the home.
The value of the report lies in its ability to ensure a home is priced to sell. In addition, the report can give insight into what upgrades and repairs are the most cost-effective to maximize a home sale.
Not taking advantage of home-selling programs
A distinct advantage of working with Windermere is its amazing program for home sellers. The Windermere Ready program is designed to help sellers make an excellent first impression with potential buyers. It provides the home seller with a personalized assessment and consultation with a Realtor to identify custom priorities for updating and repairing the home.
This personalized assessment takes the guesswork out of selling a home and allows the owner to maximize their profits with strategic updates and planning. Many Windermere agents and their clients have found great success with this program, as demonstrated in the video below.
Not waiting to sell
Generally speaking, it is better to hold onto a home for as long as you can. However, unexpected moves, family priorities, and job opportunities are some of the many common reasons a homeowner may decide to sell. Many may wonder: is two years enough time to wait before selling a home?
This is when it is important to consider the selling fees mentioned above. Closing costs, agent commissions, and taxes may not make selling the home a profitable financial decision. It’s also important to keep in mind that a home sold before two years have passed is subject to capital gains tax. Ensure you look at all the numbers before selling your home to ensure it has appreciated enough to cover closing costs.
The general rule of thumb is that it typically takes five years for it to make financial sense to sell a home.
Not accepting the best offer
Sometimes the best offer does not come from the highest bid. It’s important to discuss all the terms of the offer with your real estate agent. Cash offers or buyers who are pre-approved by a lender may be likely to close the deal on time.
In addition, go over all the contingencies laid out in the offer. Take into consideration the offer’s proposed deadlines and timelines. Look at all components of the offer to ensure it best meets your home-selling needs.
Selling a home can be a worthwhile endeavor financially. By avoiding these costly mistakes, you will be on the right track toward maximizing your home sale profitability.
