It’s important to research the local market trends and determine the cost to sell your home. You won’t always get the highest offer and you may not always be able to recoup major renovation costs.
We’ve previously covered factors that affect the value of your house such as location, repairs, and economy. These are seven things to consider when selling your house.
- Learn about your local market
If there are more homes available than buyers, prices will fall as sellers try to find fewer buyers. This is often called a buyers market. However, if there are more buyers than homes for sale, prices tend to rise as buyers vie for fewer homes. This is called a sellers market.
You can use the average Days On Market to determine if you are in a buyers or sellers market. The DOM statistic is used to measure the time that homes have been on the market. It can indicate strong demand if similar homes are selling faster that the average DOM in your area.
Also, you might want to consider the rate at which homes are selling in your area. The rate of home price appreciation is a measure of how quickly home prices are rising. A steep rise can indicate that buyers are paying more.
These trends can have an impact on the price of your home as well as your ability to negotiate repairs or offer contingencies. These trends can help you determine how long it will take for your home to sell, which can have an impact on your costs. Find out about current market trends in your area and our detailed guide to today’s housing market. Looking to sell your house fast for cash? We beat the other guys’ offers learn more
– Receive a cash offer that is competitive and pick your closing date. Find out how to sell to Selling House.
- Select the best time to sell
The seasons affect the sales of homes. The most buyers are typically attracted to spring because it is the warmest month, when kids are not in school. Although seasonal trends can vary from market to market, they are not the only thing to consider when deciding “the right time” to sell.
It is a good idea to sell your house when you have enough equity to cover your mortgage, moving costs, and your current mortgage. You will need to pay for many of these costs out of your own pocket if you don’t. Recent Bankrate data:
Until they have lived in their house for five years, most homeowners don’t have enough equity to cover the cost of closing, buying and moving.
Your life priorities may be affected if you sell your home to get a higher price. If you sell your house during peak selling season and miss a job opportunity, it could have a negative financial impact.
This guide to determining when is the best time for sales walks you through the seasonality and key considerations such as life events.
- The right price
Overpricing your home can lead to a slower sale or a harder time for potential buyers. Buyers can be skeptical about homes whose list prices keep falling over time. This could indicate that something is wrong with the property or that the seller is setting unrealistic expectations. This could limit your negotiation power as buyers may perceive the trend to be a sign that your home should not be discounted.
Homelight states that most buyers search for homes using a price range. If you set your price higher than what a reasonable person would spend, it will make it harder for potential buyers to find your home.
If you are under pressure to sell your home in a short time, it can have more severe financial consequences. Even if you are able to sell your property at a reasonable price, there may be housing overlap costs such as double mortgages, storage fees and renting temporary housing. A good opportunity to buy may be missed.
Our home valuation tool is a great place to begin when pricing your home. It uses the most recent market data for comparable houses. You can also request an all-cash deal from us. Based on information about your home and current market trends as well as data from hundreds of comparable sales, we calculate your home’s value. You can request an offer for free and you don’t have to accept it.
- Learn how much it costs to sell your home
It’s easy to focus on the 5-6 percent that is typically paid in commissions when selling a house. The total selling cost can be closer to 10% if you include closing costs, seller concessions and maintenance and repairs.
Here’s a quick snapshot of the costs for a house that sells at $200,000. This guide to what it costs to sell your home breaks down all these costs.
*We used the 2018 national average for repair costs according to homeadvisor.com
**Includes the estimated cost of title, escrow and notary as well as the transfer tax
Some of these costs, such as closing costs and agent commissions, are more difficult to control. You have greater control how your house is prepared and what you do to negotiate the sale. We’ll explore these topics in more detail below. The idea is that you can have a complete picture of your expenses so you can set a budget, and find savings opportunities.
- How you intend to sell
The traditional real estate process is well-known to most people. This includes listing your house, finding an agent and showing it. Negotiating with buyers is then the final step. There are many ways to maximize your profits, including for-sale by-owner (FSBO), selling an iBuyer.
You would basically assume all the responsibilities of a realtor in an FSBO transaction. This will allow you to avoid the commission paid by the listing agent. However, if the buyer is represented in any way, you will likely have to pay the agent commission. Learn more about commissions in our guide for selling a house. An FSBO sale is a complex undertaking, and may cause more harm than good if you are not a seasoned professional in real estate.
An alternative is to sell your home to an IBuyer. iBuyers make an offer quickly on your house using technology. They will purchase your house if you accept and pay the costs of finding a buyer.
Sellers have the advantage of being able to set the timeline and a competitive offer. Instead of paying commissions to agents, you pay a transaction charge for the service. This is different from a “home flipper”.
Selling House charges a service fee of 7 percent for each sale. You can also choose your closing date, whether it is 10 or 60 days.
Selling to an iBuyer will help you save time and money. Find out how it compares with a traditional sale.
- You can make minor renovations to add value for a minimal price.
All home improvement projects can be considered a challenge. Based on our home improvements value calculator data, a finished basement is worth 5x more than a basement in Atlanta. This represents a 13% increase in the median home value, which is 2.5% versus 2.5%.
The market in which you live and your home’s current value will impact the impact of any project or renovation. Projects such as adding a pool or wood flooring tend to result in higher increases for homes with more money, while kitchen remodels or full bathrooms tend to bring about a larger increase for homes with lower budgets.
HOME IMPROVEMENT CALCULATOR
Selling House Data provides data from thousands of homes that have been sold in your local area. This allows you to determine how your home can be improved, renovated, or remodelled to increase its value.
You should consider the cost and expected increase in your home’s value. Larger, more complex renovations can take longer and result in more unexpected expenses. It’s a great way to improve your home while still appealing to potential buyers by focusing on small, non-personalized updates.
We repair homes that have been sold to us. Our philosophy is to find things that the next reasonable buyer would like to fix. These items can have a significant impact on the safety, structure, or functionality of the home. These most common repairs were identified by our estimators. Our expert tips will help you increase your home’s value.
- Do not accept the lowest offer, but the best deal.
You will naturally want to accept the highest possible offer for your home. Don’t rush to accept an offer without carefully reading the terms. Most offers include contingencies. These are terms that let either buyer or seller cancel the agreement if they aren’t satisfied.
These are just a few examples from contingencies that a buyer might include with their offer.
- Financing contingency
If a buyer isn’t qualified for a mortgage, a financing contingency will allow them to cancel their offer. You run the risk that you will waste time listing your home again and having to accept the financing contingency. - Home sale contingency
A home sale contingency allows a buyer to make sure they have the proceeds of their home before purchasing yours. This is where the risk is that your timing is not right or that the buyer can’t sell their home. If this happens, the buyer has the right to walk away. - Inspection contingency
Buyers can use the inspection contingency to negotiate repairs, extend the closing date or rescind an offer if major problems are discovered during the home inspection. This is why many pending sales fail.
Buyers will often waive contingencies in hot markets to “sweeten the deal”. Buyers may request more contingencies if there isn’t much competition for your home. This will reduce the chance of their offer being rejected. The contingencies may mean that the highest offer might not be the best, especially if it doesn’t fit with your timeline.
If the deal is canceled and you need to relist your house, you might end up spending more than you would if you accepted a lower offer with fewer conditions. The How to Choose the Best Offer blog walks you through the process and shows you how to weigh all the options once an offer has been made.
Final thoughts
- It’s crucial to be aware of local market trends and how they impact your ability to sell. This will help maximize your net proceeds. Underpricing your property can lead to financial problems.
- More than just the listing price will determine how much you can sell your house for. All costs related to selling such as closing costs, seller concessions maintenance costs and housing overlap costs. According to Remodeling’s 2019 Cost Versus Value Report, you might see a higher return if your focus is on exterior repairs.
- There are many ways to sell your home. Some may be more lucrative than others. Consider the cost savings of selling to an iBuyer over other options like FSBO. Remember that the best offer may not always be the best. You might have to pay contingencies that will affect the amount you get back after the sale.