When you are intending to sell property, it’s natural to try to make the most out of it. While many people hope to sell high and sell fast, you should temper your hopes with realistic expectations. First, you must decide what the best realistic outcome is and then find out what the best way to sell a house is in your specific situation.
Now, that’s not to say you can’t get lucky – you may set a high price, get an offer, and close within a week. But usually, you’ll have to balance the time it takes to sell and the asking price, and how much personal labor you’re willing to put into it and how much money ends up in your wallet. But, before all else, you should understand the market conditions in your locality.
The real estate market in your vicinity will play a large part in determining what price you can set and how fast you can expect to sell. And, in general, the U.S. real estate market is currently booming, so you are in a good spot. But, you need to understand the specific conditions in your locality and not in the wider area.
For example, the California real estate market is hot, but that doesn’t necessarily apply to selling a house in Orange County (given the current market, it does apply, but the point still stands). Check the prices of comparable homes that have sold recently in your area so you can know what to expect and what price to set.
Naturally, you can’t influence the real estate market. You can let it guide your decision in whether you will try to sell now or wait a few years until the situation is, hopefully, more favorable. However, you can choose the time of year to list your home, and that will also influence how high and/or fast you can sell.
There’s an entire science to choosing the best month to sell a house. But, to give a broad overview, listing your home in spring gives you the highest chance to find a good buyer, followed by summer, then fall, and finally winter. So, how to sell a house should always be asked alongside when.
In a place like California, with year-round warm weather, the colder seasons have less of an effect, but spring and summer are still peak seasons. That’s not to say that the right buyer won’t come along in the middle of February, just that those kinds of buyers are few and far between.
If you are very liberal with the asking price, selling fast is not an issue. With a below-average asking price, you will be able to find a buyer easily. The same more or less applies to selling to a wholesaler – they will buy your home quickly, but will often give low-ball offers. However, you likely don’t want to lower your price too much.
In this case, your home should be in excellent shape before you put it on the market. That means taking care of all repairs beforehand, possibly renovating the exterior to attract potential buyers, and increasing your curb appeal. Having an appraisal and inspection done can also speed up the process.
Selling your home high is, in large part, based on waiting for the right buyer to come along. However, even if you are willing to wait, you shouldn’t set an unreasonably high asking price. Once again, compare the prices of homes that have recently sold in your vicinity and make your decision based on that.
Now, waiting for the perfect buyer that will pay the asking price naturally means that you will likely not be able to sell quickly. A compromise is to increase the value of your home and look for a good buyer that is willing to pay only slightly below the asking price. If you are willing to invest in your home to increase its value, consider:
Some repairs are necessary, while some will increase the value of your home. The same goes for renovations. However, not all repairs and renovations are equally cost-effective. Your best bet is to make small, cheap, and visible renovations – like a new paint job, fixing a broken roof, freshening up the kitchen, etc.
Large additions – like adding a swimming pool for example – will increase the price of your home and may be worthwhile in a luxurious area, but not in most localities. Such additions do increase the price, but the cost and potential gain will be diminished if that is not what potential buyers are interested in.
Finally, the aim of selling high is to end up with more money in your wallet, which is not only based on the price. You also need to consider how much you will pay in capital gains tax. To oversimplify, you pay the least if you are selling your primary residence. Conversely, you will pay the most if you are selling a home that you’ve owned for less than a year.
Then, we get to how you intend to conduct the sale of your home. The traditional way is to sell through an agent. A good agent will likely get a good asking price and be able to sell your home relatively fast, plus you will have to put in minimal effort.
However, realtors charge commissions and that’s the main downside of working with them. The median commission in California is around 5% and it goes higher for more expensive homes. So, if your home was sold for $600 000, the agent’s cut would be $30 000, which is a large chunk of proceeds.
On the other hand, you can choose to sell on your own. ‘For Sale By Owner’ homes are far from rare. Yet, know that you have your work cut out for you if you go down this route. You will need to do the marketing, organize showings and open houses, negotiate with buyers and buyer’s agents, take care of the paperwork personally, etc.
You will be putting a lot of your time and energy into preparing and selling your home, but you will avoid paying a commission. In essence, it’s a balancing act, but this could be the best way to sell a house in your situation. Additionally, you can always try selling on your own and hire a realtor if you realize you are not up to it.
You always have options if you dig around enough, and SleeveUp Homes is one of them. We are not realtors or wholesalers, so you won’t be paying any commission and we will always offer a fair price. And because we do our own repairs, you don’t need to invest in preparing your home, leaving more money in your wallet.
If you contact us today to request a cash offer, you will see why so many Californians put trust in us. You are under no obligation to sell and it’s your call what the best way to sell your house is, but if you do decide that our offer is more than fair, you can expect to close in as little as seven days and even receive $10 000 in advance.