How to Get Top Dollars From the Sale of Your Home
If you're selling your home with intentions of upgrading to a bigger home, getting top dollar for your current home is a priority, especially if you need proceeds from the sale as down payment on your next property.
There’s plenty you can do beforehand to get the most money from the sale. Updating the property and making needed repairs often commands a higher price. Many buyers are willing to pay more for turnkey properties.But keeping your house in good condition isn't the only way to get the most money.
1. Price your home slightly under market
This might seem like a step in the wrong direction, but pricing your home slightly under market value is a creative way to gain attention. According to Realtor.com, “aim to price your property at or just slightly below the going rate. Today's buyers are highly informed, so if they sense they're getting a deal, there likely to bid up a property that's slightly under price, especially in areas with low inventory.”
Let’s say $200,000 is a fair, competitive price for your property, but you decide to list for $5,000 under comparable listings. At the end of the day, buyers want the most bang for their buck. So you’re likely to receive more showings at this price point, which equates to more offers. Multiple buyers competing for your property can drive up the asking price, and you could walk away with more than you ever anticipated.
This method doesn't always work, so only lower the asking price when selling for less doesn’t eat into the down payment needed for the next property.
2. Don’t handle the sale alone
Realtor commissions can cut deep into your profit. At an asking price of $200,000, 6% is $12,000, which is $12,000 less in your pocket after the sale. So understandably, you might go back and forth with whether to sell without the help of a real estate professional.
This can be done, just know that it'll take a lot of time and effort on your part. You’ll save by not paying a commission, but you may not get the most money for your property.
A study by Collateral Analytics found that “for sale by owners don't actually save any money, and in some cases, may be costing themselves more by not listing with an agent.”
The reasons vary, but might have everything to do with lack of knowledge. Many for sale by owners don't know the market well enough, and they end up listing their properties for far less than market value. So even in a situation with multiple buyers competing for the home, the offers that come in may be less than what these sellers could have received with an agent.
Also, many for sale by owners don't have time to heavily market their properties. They often rely on word of mouth or yard signs to draw attention, which may not generate the amount of traffic or response needed for a quick sale. And if the property sits with little interest for too long, these sellers become frustrated and jump on any offer they receive, even if it means selling below market value.
Real estate agents, on the other hand, have a huge network and know how to aggressively market properties and increase the number of showings for their clients. By working with an agent, your house may receive tremendous exposure and sell for the maximum amount of money.
Cherry Creek Mortgage is ready to help you move forward and find the right loan for your next property. If you’re using proceeds from the sale as down payment on your new home, we understand the importance of netting the highest profit. But regardless of the outcome, we have an array of mortgage solutions to assist you—even those requiring less out-of-pocket. Give us a call and one of our loan experts will be happy to discuss your options.