5 Tips to Maximize Profits When Selling Your House
There are many reasons why homeowners choose to sell their homes, and regardless of the reason, they all want to get a high profit from the sale. Here are five tips to help you make smarter decisions and maximize profits when selling your house:
Tip #1: Study The Market
Studying the market is similar to house hunting. Search for similar houses to yours, and check how much they’re selling for, so you can offer the best price.
Also, try to figure out the best time to sell in your area. As a general rule, the best time to list your home is when the inventory is low, and the buyer demand is high. An experienced real estate agent should be able to identify trends and advise you accordingly.
Tip #2: Use Different Channels to Market Your House
The typical method used to market your home is website listings. However, there are many other cheaper channels to advertise, like social media. Look for home selling groups to post your home’s photos, share with your friends, and maybe consider advertising with Facebook Ads.
The more exposure your house gets, the faster you can find a buyer, which in return leads to fewer expenses and a higher profit.
Tip #3: Invest in a New Garage Door
Many homeowners choose to make home improvements to increase the value of their homes. A great way to increase the curb appeal and add up value is by changing your garage door. Few people know about this, but changing your garage door can get you a high return on investment.
Insulated garage doors can add up to 4% to the value of a house. There are different types and prices of garage doors, but let’s say you purchase one that, with installation, costs $1,500 and your selling price is $100K. By changing the door, you can add $4K to your price, making your return on investment $2,500.
Tip #4: Review The Terms of All The Offers
Beware: don’t jump into accepting the highest offer you get. Review others offers, too, and check the terms and contingencies in the offer. Because of the contingencies the buyer is asking for, the highest offer may not yield the most money.
Contingencies provide a way out for buyers, whether from making the purchase or renegotiating terms. If the buyer decides they no longer can or want to purchase the house, you’ve wasted time and money. Also, the paperwork will cost you more money.
Some contingencies to look out for are:
- Inspection contingency:
An inspection contingency allows the buyer to negotiate repairs or request to extend the closing date.
- Home sale contingency:
With a home sale contingency, the buyer gets some time to sell their house before purchasing yours; this represents a risk for you, especially when the timing is not what you need.
- Financing contingency:
The financing contingency is the most common, and it allows the buyer to back out from their offer when they cannot get a mortgage.
Tip #5: Try to Negotiate Your Agent’s Commissions
Typically a real estate agent fee is 6%, and it’s tough to negotiate a lower percentage or fixed amount. However, if your house is selling for a reasonable price, higher than the average, and the real estate agent is confident that the sale can happen fast, they might agree on a fixed fee or lower percentage.
Consider Your Selling Options
As an extra tip, consider different selling options. Traditionally, everyone lists their homes, whether they’re selling on their own or with the help of a realtor. However, there’s a different way, which is selling to a homebuyer.
Homebuyers offer a unique process. By investing in properties, they have enough equity to purchase houses without the need for a mortgage. Some of the benefits they offer include:
- They pay for closing costs
- No appraisals are needed
- Contingency plans are not requested
- The selling process is fast
- The homeowner doesn’t need to invest in home improvements or make repairs. Homeowners buy houses as-is.
I Will Buy House is an experienced homebuyer in Washington. We can make you a no-obligation cash offer and pay you in as little as seven days. To find out if we are the right fit, please send us a message with all the details about your house.