Patricia M. McCorry, JD, CRB, GRI's Blog
Ultimately, the amount of money an individual requires during the home selling journey varies. If you intend to sell a house, it often is a good idea to plan ahead for any expenses you may encounter along the way. Because if you fail to account for potential house selling costs, you may struggle to seamlessly navigate the property selling journey.
Now, let's take a look at three of the most common home selling expenses.
1. Home Cleaning
Regardless of whether you decide to clean your house on your own or hire a professional, house cleaning costs can add up quickly. If you prepare for home cleaning expenses, however, you can keep your residence neat and tidy without breaking your budget.
Oftentimes, it helps to make a list of the areas of your home that require extensive cleaning. You then can establish home cleaning priorities, make a list of the cleaning supplies you will need and clean your residence accordingly.
If you decide to hire a professional cleaning company, be sure to shop around. Professional cleaning companies are available in cities and towns nationwide, and if you conduct an in-depth search, you can find a cleaning provider that offers a great blend of convenience and affordability.
2. Home Repairs
Cracked or damaged home siding, a faulty water heater or other house problems are unlikely to do you any favors during the property selling journey. If you put aside funds to address such issues, you can upgrade your residence before you list it.
It may be beneficial to conduct a home inspection prior to adding your house to the real estate market. During an inspection, a home expert will analyze your residence and identify any underlying property issues. You next can use a home inspection report to determine which house repairs need to be completed right away.
Keep in mind that some home repairs are simple, and as such, you may be able to complete them on your own. Conversely, for complex home repairs, you should enlist professional support. Although you will need to pay to hire a home improvement professional, this individual can help you quickly and safely upgrade your residence.
3. Lawn Care
How your lawn looks to potential buyers is crucial, particularly for those who want to enjoy a fast, profitable house selling experience. If your lawn is freshly cut and weed-free, you could help your house stand out to dozens of prospective buyers.
In many instances, home sellers can mow the lawn, trim the hedges and perform other lawn care tasks on their own. This enables sellers to avoid the costs associated with hiring lawn care professionals.
If you prefer to hire lawn care professionals, be thorough. Request client referrals, and you can find out what it is like to work with a particular lawn care professional before you make your hiring decision.
Lastly, as you prepare for the home selling journey, you may want to hire a real estate agent. If you have a real estate agent at your side, you can plan ahead for all aspects of the house selling journey.
Selling a house the second time around may prove to be much easier than your initial home selling experience. In fact, a veteran home seller can learn a lot from his or her past home selling experience, including:
1. How to Establish a Competitive Initial Home Asking Price
Setting a competitive initial home asking price is paramount, regardless of a home seller's experience. If a seller establishes a competitive initial asking price from the get-go, he or she can increase the likelihood of stirring up plenty of interest in a house. Conversely, a seller who sets an initial asking price that is too high or too low may struggle to achieve the optimal home selling results.
Think about how you priced the home that you most recently sold. This experience may help you determine how you'll price your current house, as well as enable you to avoid potential pricing mistakes along the way.
Furthermore, it usually helps to look at the prices of comparable houses in your city or town. If you assess this housing market data, you can see how your house stacks up against the competition and narrow the price range for your residence.
2. How to Promote a House to the Right Groups of Buyers
If you previously struggled to showcase your house to buyers, you can learn from your past experience and avoid making the same mistakes once again.
Ultimately, a home seller should allocate time and resources to enhance the curb appeal of his or her home. If a house features a stunning exterior, it may generate lots of interest from buyers.
It often helps to maintain a clean home interior as well. If you keep your home neat, tidy and clutter-free, buyers should have no trouble envisioning what life might be like if they purchase your house.
3. How to Hire the Right Real Estate Agent
Conduct an in-depth search for the right real estate agent – you'll be glad you did. If you meet with a variety of real estate agents, you can find a housing market professional who can help you achieve your desired home selling results.
Don't forget to request client referrals from a real estate agent. Because if you can learn about past clients' experiences with a real estate agent, you can make an informed choice about whether to hire this real estate agent to guide you along the home selling journey.
Ready to add another house to the real estate market? Use your home selling experience to your advantage, and you can boost your chances of enjoying a profitable home selling journey.
There is a science to selling your home at the best price and within the shortest period of time, but it's not always an exact science!
Although you can't control market conditions, seasonal fluctuations, or the condition of your neighbors' property, you are still in the driver's seat when it comes to pricing, curb appeal, and the interior condition of your home.
Assuming there's no legal snags or major "red flags" about the condition or appearance or your home, the selling price you set may make the difference between a fast sale and house that lingers on the market for months on end. Many house hunters and (all) real estate agents are quite savvy about property values and real estate prices. If the selling price of your home is based on emotional factors or the amount of money you need to get back in order to purchase your next house, then there's a good chance you'll be pricing yourself out of the market. That's where your real estate agent comes in. They will help you set a realistic asking price that will favorably position it to similar properties in your neighborhood and community.
While everyone wants to get the maximum return on their real estate investment, there's usually a limited amount of "wiggle room" between the appraised value of your home and the amount of money a potential buyer would be willing to pay for it. Since it may be difficult for you, as a homeowner, to be objective when determining a realistic price for your home, it's often beneficial to have a comparative market analysis done by a real estate agent or professional appraiser.
Another reason for consulting with professionals involves the need to be objective about home improvements. Some home sellers have a difficult time accepting the fact that their asking price can't always reflect the full cost of recent home improvements. Home additions, updates, and recent remodeling work can have a positive impact on your home's asking price, but it's usually not a dollar-for-dollar return on investment.
If you're preparing to put your house on the market in the near future, it pays to do a little online research, have your property professionally appraised, and/or work with a real estate agent who will do a comparative analysis of your home's value. Other things you can do to increase the likelihood of getting your home sold quickly include a thorough top-to-bottom cleaning, applying a fresh coat of paint where needed, and "staging" your home to appeal to the widest variety of potential buyers. While that might include making some major changes to your home's décor, its landscaping, or even furniture arrangement, the rewards of a speedy sale often justify the effort and short-term inconvenience of getting your home ready for the close scrutiny of house hunters, home inspectors, and buyers' agents!
If spending money to make money on your property seems counter-intuitive, you might attempt to sell your home “as-is” and keep your money for the new place. After all, most of those homes featured on renovation reality shows are in worse condition than yours; and those buyers intended to gut the place for a complete makeover anyway.
Just know that the offers you receive will reflect the needs of the buyer, so you won’t get top dollar unless the property is in an extremely desirable area. Still, it might make sense to sell as-is for a discount if your situation is difficult or you’re strapped for cash. Conversely, selling a home that isn’t up to code reduces your buying pool. FHA and VA loans require a home to meet minimum property standards to secure the loan.
Another consideration is how much you still owe on the property. Unless the investment for repairs and upgrades is more than your remaining mortgage, it is probably worth spending to bring your property up to code. A qualified real estate professional can help you prioritize your repairs to those necessary to get it sold, or market it to buyers looking to renovate to raze the home.
So, who buys as-is?
Investors often purchase property intending to “flip” it; that is, to renovate a distressed property and quickly resell it to recoup expenses and make a profit. Typically, investors want the “bones” of the property to be sound, so foundation and structural issues are less appealing to them.
Another type of investor wants the property for its proximity to business or industry. Their goal is to have the property rezoned for commercial purposes or to build multi-family structures on it instead. If the area around your home is transitioning to commercial or multi-family dwellings, your professional real estate agent can guide you to this type of investor.
Less common is the buyer that wants a project or fixer-upper on which to put their own stamp. Some fixer-uppers buy for nostalgia (they lived in the home/area as a child) and others for what they know the area can become. Their goal is to restore the home to its former glory while adding newer amenities. As opposed to flippers, these buyers often intend to live in the home while working on it, or once the work is complete.
If you determine that selling as-is is the best option for your situation, discuss the issue with your agent. She can warn you about what to expect for offers with your home in its current condition and help you set a fair asking price based on its location and the market trends in your area.
An open house represents a valuable opportunity for a home seller. If a seller plans ahead for an open house, he or she may boost the likelihood of hosting an unforgettable event that showcases the full beauty of a residence. As a result, this seller may receive multiple offers on his or her home as soon as the open house reaches its conclusion.
Believe it or not, preparing for an open house can be easy. Now, let's take a look at three tips to help a home seller get ready for an open house.
1. Perform Extensive Cleaning
A neat, tidy home is ideal, particularly for a home seller who wants to enjoy a fast, profitable home selling experience. Thus, if you allocate the necessary time and resources to clean your residence now, you may be better equipped than ever before to host a successful open house.
To clean your home's interior, you'll want to take a room-by-room approach. Wipe down each room's walls, mop or vacuum the floors and remove any debris.
Moreover, you should spend some time mowing the front lawn, trimming the hedges and performing assorted home exterior maintenance. And if you need extra help along the way, don't hesitate to reach out to a professional landscaping company, either.
2. Declutter As Much As Possible
Clutter can make it tough for a homebuyer to envision what life may be like if he or she buys your residence. Therefore, you'll want to remove as much clutter as possible prior to an open house.
Oftentimes, it helps to rent a storage unit where you can store assorted clutter until you finalize a home sale. A storage unit generally provides a safe and affordable option for home sellers who want to safeguard various belongings over the course of several weeks or months.
On the other hand, it may be beneficial to sell excess items online or host a yard sale. Because if you can sell items that you no longer need, you can declutter your home and earn extra cash at the same time.
3. Collaborate with a Real Estate Agent
Hosting an open house may prove to be challenging, particularly for those who are trying to work alone. Fortunately, real estate agents are available who can help you take the guesswork out of getting ready for any open house, at any time.
A real estate agent is happy to provide comprehensive support at each stage of the home selling journey. As such, he or she will help you enhance your home and ensure it is open house-ready.
Usually, a real estate agent will offer personalized recommendations to help you prep your residence for an open house. This housing market professional also will promote your open house in the weeks and days leading up to the event. And when the open house ends, a real estate agent can provide honest, unbiased event feedback as well.
Host a successful open house – use the aforementioned tips, and you should have no trouble achieving the best-possible results during an open house.