Selling your house can be a tiring and time-consuming task, mainly if it’s your first time. In some cases, it may seem like an invasion of your privacy because potential buyers will come into the house, open cabinets and closets and move from one place to the other. They may even criticise it and give you a significantly low offer.
With limited experience at your disposal, it is pretty easy to make mistakes. But with essential knowledge, you can easily avoid these downsides. So, read on to learn how to save money when selling your house.
Use a Real Estate Agent
Well, using the services of a real estate agent may seem counterintuitive because you will be required to pay a commission to have your house sold. However, the truth of the matter is that you will end up saving a lot more than you would have saved if you had sold it yourself.
How do you save money by using a realtor? Basically, most homeowners either put a very low or very high asking price on their houses. This way, you may end up lowering the selling price to a large extent than you anticipated in the first place. It typically includes the price you would have offered the realtor agent as a commission.
Remember that there are plenty of real estate agents out there, so make sure you opt for the best one. Consider contacting quick sale property buyers because they will negotiate the best deal, serve you in the best way possible and sell the house fast.
While you may have a family friend or workmate who has ever sold a property to help you, it is always advisable to opt for a professional agent who has the much-needed experience. With this, your property will be sold within the shortest time and save a lot of money.
Negotiate Real Estate Agent’s Commission
Most homeowners are not aware of the fact that they can negotiate the agent’s commission. While the commission ranges between 5% and 7%, there is still room for negotiation. For example, you can ask the realtor agent to charge you a 3% listing commission and 2.5% for the buyers’ agent. You may be amazed that the agent is willing to accept your offer, primarily when you sell the house within your budget.
Understand the Local Market
If there are more houses than buyers, the price will undoubtedly decline because the sellers compete for limited buyers. The real estate specialists refer to this as the buyers’ market. When the number of buyers surpasses that of home sellers, on the other hand, the price will hike as the buyers compete for the few houses. This is what is commonly known as the seller’s market.
The best way to evaluate whether you are in the sellers’ or buyers’ market is to analyse the average Days on Market for comparable houses around your locality. Days on Market denotes how long homes are actively listed on the market.
If you find out that the houses that resemble yours are selling quicker than the average Days on Market in your locality, it portrays high demand. What’s more, you may consider checking the house price appreciation rate for the houses in your target market. This way, you will find out how quickly house prices are appreciating.
Negotiate the Price and Terms
When it comes to negotiating the prices and terms, the majority of property sellers give in quickly. As a general rule, you have to negotiate to get the best out of the house and benefit both parties. For instance, let us assume you are listing the property at €400,000, and a potential buyer comes with a €380,000 offer.
The home has perhaps not been on the market for a prolonged period, so it would be wise of you to counter the price. You can offer €390,000 and see whether the buyer takes it. If the buyer counters the offer to €385,000, you can give him or her a final price of €388,000. The rule when it comes to negotiating is that you should keep it impassive and fair.
If you get into backbiting and insults, the negotiation will make all of you lose. Thus, please contact your listing agent regarding the best way to negotiate for the greatest price while saving some cash.
Price the Home Correctly
Keep in mind that your house is only worth what the present buyers are ready to pay. Thus, it would help if you think objectively about its value. If you have lived in the house for an extended period, the memories may interfere with your judgement. In this case, you need to stick to the facts as you estimate the house’s price.
The most proven way to define your home’s value is to ask a realtor agent to perform a CMA (comparative market analysis). The analysis generally compares your property to other properties in the neighbourhood and then predict the amount that buyers are willing to part with.
Get a Home Inspection
Homebuyers always utilise the services of home inspection agents when buying houses. But are you aware that they can help you too? Although you will have to pay a few hundred dollars to have your home inspected, the truth is that it pays. The reason for this is that potential buyers will have minimal opportunity for negotiations since the house will be in perfect condition.
When it comes to home inspections, here are some of the things it covers:
- Windows, walls, ceilings, floors and doors
- Plumbing, electrical, cooling and heating systems
- Visible insulation, roof and attic
- Basement, structural elements and foundation
After the inspection, you will get an extensive report containing what works and what’s faulty. What’s more, you will get recommendations for repairs and maintenance.
Learning how to sell your home fast and save money is vital. Although you might not save the projected amount, it is essential to be financially and mentally prepared for the less-than-ideal situations. The house may sell for a meagre amount or stay in the market for an extended period than anticipated, primarily due to the diminishing economy.