Understand your local market
When there’s more homes for sale than there are buyers, it usually brings prices down as sellers compete for fewer buyers. We often call this a buyers’ market. On the other hand, when there’s more buyers than there are homes for sale, it tends to drive prices up as buyers compete for fewer homes. We call this a sellers’ market.
A good way to gauge whether you’re in a buyers’ or sellers’ market is to look at the average Days on Market for similar homes in your area. DOM is a real estate statistic that shows how long homes are actively listed on the market. If similar homes to yours are selling faster than the average DOM for your area, then it can suggest strong demand.
You may also want to look at the rate of home price appreciation for homes in your market. Home price appreciation shows how fast home prices are rising; a steep increase can signal that buyers are paying more.
Choose the right time to sell
Home sales ebb and flow with the seasons. Spring typically brings the most buyers because many people want to move during the warmer months when the kids are out of school. While seasonal trends vary by market, they aren’t the only factor to consider when thinking about “the right time to sell”.
To sell your home for the most money, it can be helpful to sell at a time when you have enough equity in your home to pay off your current mortgage, the costs of selling, and the costs of moving. Otherwise, you’ll need to cover many of these expenses out of your own pocket. Timing your sale to receive a higher price may also conflict with other life priorities like moving for a new job, helping aging family members, or starting a family of your own. For example, if you time the sale of your home for the peak selling season but miss a major job opportunity as a consequence, that could actually have a worse financial impact.
Set the right price
If you overprice you’re home, then you risk having to drop the price, taking longer to sell, or making it harder for buyers to discover your listing. Over time, buyers can become skeptical of homes where the list price is continually declining, suggesting that there is something wrong with the home or that the seller has unrealistic expectations. This can limit your negotiating power because buyers might perceive the trend as a sign your home should be discounted. When pricing your home, a good place to start is our home value tool, which uses the latest market data for comparable homes.
Determine how you’re going to sell
Most people are familiar with the traditional real estate process: preparing your home for sale, finding an agent, listing your home, showing your home, negotiating with a buyer, and then finally closing the deal. However, there are other methods to maximize your proceeds, like Spitio https://spitio.com .
Consider minor renovations that add value at minimal cost
The impact of a project or upgrade varies based on the market you’re in, and you’re existing home value. Some projects like adding a pool or wood floors tend to have bigger increases for more expensive homes, while projects like a kitchen remodel or adding a full bathroom tend to have a bigger increase for less expensive homes.
It’s important to consider the costs and estimated increase to your home value because many larger, more involved renovation projects can be timely and lead to more unplanned expenses. Focusing on minor updates that aren’t tied to individual tastes is a good way to improve your home and maintain broad appeal to buyers. To maximize your net proceeds, it’s important to understand local market trends, and how they will impact the price you can sell for. Overpricing your home can have direct financial consequences, and under pricing can leave money on the table.
The amount of money you sell your home for is determined by more than the list price. Look at all of the costs associated with selling like closing costs, seller concessions, maintenance, and housing overlap costs. There are many different ways to sell a home that can allow you to sell for more money than the traditional process. Consider the cost-savings of selling.