How to gain more profit on the sale of your home
This is the burning question for all home sellers. How can you gain more profit and net more in your pocket at the closing of your property? Here is a list of quick tips to do just that.
1. Hire a professional Realtor with a track record. This is a major financial move you need to make, interview multiple agents and ask them the right questions. Check out our website for a list of questions you can ask the professionals you are interviewing for hire; along with our own answers. The Pro’s Real Estate Team is a professional team of expert agents with a track record of success and earning more for our clients.
2. Get the house ready to show by utilizing your professional Realtors staging suggestions. The Pro’s Real Estate Team will guide you step by step through the staging process and save you money upfront by preventing you spending money on projects that wont give you a return on investment and pointing you the right direction for fresh inexpensive updates, like painting, moving furniture and packing personal items.
3. Know your numbers. Make sure that one of the questions you ask when you are hiring your Realtor is to see your Net sheet. This will give you an idea of costs to sell, including commission, seller closing costs, taxes and other fees that you will need to pay to get the home to close. Make sure you give your Realtor your exact payoff amount before they generate this form. This includes your primary mortgages, home equity lines, tax liens, abatements, mechanic liens, etc.
4. Disclose all know issues with your property upfront and fix them, if possible. There is nothing that kills profit like a bad home inspection. For example, if you know your roof is 40 years old and has a minor leak, it may only cost $7000 to replace but that buyer is going to find a roofer that will happily write a quote for $10,000+. Disclose issues and point to the a reduced market price or credit to buyer for said repairs if you can not pay upfront to fix issues. Have a sellers inspection done upfront if you think there may be hidden issues that could arise at inspection. Then get them fixed- this will return the most money in the end.
5. Price the property right at Market Value (or slightly under MV in a sellers market). Most sellers believe that pricing the home “with room to negotiate” is the best way to earn more. This is a dangerously FALSE assumption. An over priced home is more likely to sell the neighbors homes. If you price the home right, buyers will show up in abundance and you will have multiple offers on the home. There is only ONE of your home. It is a unique product. When priced right we typically see the property sell over list price in a seller market.
6. DO Not let you house sit on the market and get STALE. The higher the DOM (Days on Market) the lower the buyerand their agent will attempt to negotiate a price.
How do you sell a home quickly to prevent this?
Choose the price yourself and use the comparatives and good common sense in making the decision. If two out of three agent tell you your home is worth $300,000 and a third agent is telling you $350,000 be wary and check their current listing inventory. Check their sales history of original list price vs final sales price plus their DOM average for sold properties, ask them for a list of their “expired” properties as well. There are agents who “buy” listings by telling you it will sell at a higher price in order to seal the deal. Why not, they generate buyer calls who don’t want to buy your property because it is overpriced but that agent can just sell them another house. It’s a win for them and a lose for you.
Why would another agent give you a $50K less value if it wasn’t true? This is where good common sense comes in. If you think the number seems high but great if they could do this- ask them to sign a listing contract that will automatically cancel if they request a price reduction. When they call you to talk about changes… well if it didn’t sell… they probably wont call… Bring us to our last tip:
7. Good communication with your agent is vital. If an agent signs a contract for your home sale and you never hear from them again or get a few to zero showings the first couple of weeks on market- RUN AWAY! Your DOM will climb and it will never sell. When you do decide to hire the right agent, they will now have to contend with the destructive days on market stat and will have to recommend a significantly lower listing price. Go with the right agent up front and avoid this common profit killer.
Not all agents have a crystal ball, even good agents cant tell you the exact number your home will sell for. They can and should communicate feedback, suggestions, and changes that should be made on a weekly basis. If a price reduction is needed that agent will suggest it with in 10-14 days the home is listed and possibly warned you of this move when you choose a slighter higher listing price.
The Pro’s Real Estate Team is happy to interview with you for the job of getting your home sold. We pride our selves on the education of our clients, open and frequent communication and a phenomenal track record of earning our sellers top dollar!
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