Home Sellers: How to Make the Most Profit on Your Sale
If you are planning to sell your home in the near future, your goal is likely to get the most money out of it as possible. You want to make a healthy profit by selling the property for more than you owe. Other goals you may have include a relatively quick sale, as well as one that is free of major complications and delays.
As a home seller, there are steps you can take to prepare your house—and yourself—for a smooth and profitable sale. We can tell you it will not be as easy as putting a “For Sale” sign in your yard and waiting for the huge offers to roll in. It may take some work. How much time and money you want to invest in your home sale may depend on your current ownership standing, financial situation and your ultimate home selling goals. Let’s take a look at a few common scenarios we see at PropertyLark…
Plenty of Time
Some home sellers are in a great position. They have plenty of time to sell and they have money that they can invest in getting the property ready for the best marketing presentation. This type of seller will likely be able to make the highest profit. They can hire a top real estate agent to market their home and help with negotiations. They can make property repairs and maybe even some strategic upgrades to boost the house’s resale value. Home staging, professional photography and an aggressive marketing campaign will also help attract more buyers and potential bidding wars.
This home seller will take longer to get the house on the market and field offers—and they will be spending more out of pocket. However, they are in position to sell the property for the highest possible price and walk away with a tidy profit.
Less Time and/or Money
A small percentage of homeowners fall into the category above. Most will fall into this second range where they don’t quite have as much time and/or they may not have a ton of money to spend on upgrades, repairs, etc. They aren’t desperate to sell, but they would like to sell soon and make a strong home seller profit. In this situation, the home seller will need to do their research and weigh their options. Hiring an experienced real estate agent will certainly help and be worth the added expense. Homes listed with Realtors®, on average, sell for more than those which are sold directly by the owner.
This seller will have to determine which repairs and upgrades (if any) are worth the investment of time and money. They will have to review any purchase offers that come in and decide which one is best. It may not be the one with the highest price. All the offer details need to be considered. Does the buyer have contingencies? Is their financing solid? Will they present potential complications and delays?
Always remember that your profitability will also be affected by the ongoing ownership costs. If it takes three months to sell the house, that’s three more months of mortgage payments, insurance premiums, property tax bills, utilities and general upkeep. Those expenses add up. A fair offer that presents fewer complications is often a great solution.
No Time or Money to Spare
Lastly, let’s look at a scenario where the homeowner is in a position where they want or need to sell their house as soon as possible. They don’t have much time to spare and they don’t have money to invest in repairs, upgrades or real estate agent commissions. Examples may be divorces, job relocations, unwanted inherited properties and financial distress (pre-foreclosure, tax default, job loss, etc.).
In these types of cases, selling to a real estate investor can be an effective solution. The seller may still be able to make a decent profit or maybe breaking even is the best hope. The good news about cash home sales is that they can be completed very quickly with no real complications to worry about. A deal can be closed in a week or two rather than taking several months to complete. Of course, the selling price will never be as high in this scenario. However, when you take away all the out-of-pocket expenses, ongoing ownership costs and potential closing delays/complications, some motivated sellers may end up better off with this type of solution. Profits can still be made, depending on what you still owe and other financial factors.
If you have the time the money, a traditional home sale is probably going to give you the best profit potential. If time and money are limited, then you may want to explore multiple options as described above. Every homeownership situation is different and there is not one right answer for everyone. At PropertyLark, we will gladly work with you to determine your best home selling solution.
To get started, please fill out the contact form to the right of this page. Let us know a little about you and your house, and we’ll contact you with information and/or a fair cash offer in less than 24 hours.