Six tips to sell your home for the best price
Selling your house is a difficult task and not one to be taken lightly. A home is the biggest purchase many people ever make. And as a result, many households’ financial stability depends on recouping the money invested into their homes. Use these tips to set yourself up for the best return.
1. Find a trusted real estate agent
Finding someone who can explain the ins and outs of real estate - and being open to their advice is often the first step to a favorable sale.
“You are selling what is typically the largest monetary asset you own,” says Rick Smith, owner of RCS Property Management. “This is your money, your home. Hire the right realtor. Be prepared to listen, but don’t be afraid to voice your concerns. And definitely ask a lot of questions.”
Trust is crucial. Finding a real estate agent who works in your best interests is important for such a major transaction. A skilled, caring agent can devote the necessary time and energy to get the most out of your home’s potential. They’ll also likely be more honest about any flaws that must be addressed. Developing a positive working relationship with a real estate agent who takes your life plans, financial goals, and family dynamics to heart can help relieve the stress of selling your house.
2. Be realistic about the listing price
From negotiating fees to setting a list price, your agent may not always be able to tell you what you want to hear. Most homeowners believe the value of their home is greater than the price for which it can sell, and they may push for a higher initial listing than is justified by the current market. Regardless of what you originally paid for the home, your agent can offer a realistic assessment of its true market value while providing information on sales of similar homes in your area.
Smith advises homeowners to price their houses at or slightly below the price of recently sold homes that are comparable in location, size, and condition. “Homes that are overpriced become ‘stale,’” says Smith. “When the price finally does come down, often the home sells for less than it would have sold for if it had been priced correctly in the first place.”
By listing a home at a more realistic price, it’s likely to receive more offers. This can give a seller more leverage in negotiations with the buyer, which may lead to a higher sales price.
3. Be honest about the condition of the house
Another important issue to consider is the current condition of your property. All homes develop problems that need repairs, including plumbing issues or a leaky roof. While some homeowners may be tempted to gloss over such issues at the time of sale, hiding them from potential buyers will inevitably lead to negative consequences.
“The condition of the home plays a big role, both in the value of the property and also while in escrow,” says Smith. “If a buyer discovers the home has a significant amount of termite damage, or the foundation needs repairs in excess of, say, $20,000, that can be a deal breaker at worst, or at best start a renegotiation between buyer and seller, costing the seller money.”
4. Invest in a pre-listing home inspection
If you’re selling your home, a home inspection is likely going to happen at some point. As the seller, however, you can take the initiative and have it done before any buyer even has a chance to see your property. This will allow you to find any glaring issues and have them repaired, making your home more attractive to prospective buyers.1
Smith says homeowners should always get their property inspected for such issues as termites or mold before going on the market. The owners can then make repairs or upgrades as needed in advance and disclose the inspection report and the improvements to buyers before an offer is made.
5. Invest in home improvements that add value
Finally, homeowners should make a home look its best before showing it to buyers. Beyond a thorough cleaning, real estate agents often recommend making upgrades before your home hits the market. Here are some examples:
- Remodel bathrooms
- Remodel your kitchen, or at least give it a small update
- Replace siding
- Replace roofing
- Give the interior of your home a fresh coat of paint
- Replace or refinish flooring2
“That means they may put $10,000 to $15,000 into their home before it hits the market but see a return of significantly more than that by selling for well over the figure they would have received [without the updates],” says Smith. “It is not uncommon to have a seller recover two to three times that investment if it’s done correctly.”