Centre>Helpful Articles>How to make the most
money when you sell
E-mail me: mlummis@RealEstateHalifax.ca |
Hotsheet & Newsletter
Signup | Free Market Analysis | Home Sellers Handbook |
Your Home Here
My Guarantee | Home
Renovations | Articles for Homeowners
HOW TO MAKE THE MOST MONEY WHEN YOU SELL
Make Sure You Don't Make These Ten Deadly Mistakes
1. Buying a replacement home before selling the old one.
The temptation may be great to buy a replacement home first. That way
youll know where you are going, and how much youll be paying.
And you wont have to worry about being left out in the cold with
nowhere to go if your home sells quickly.
However, the financial risks of buying first are great. Its far
better to sell your current home first and endure the inconvenience
of moving to an interim rental - which rarely happens - than it is to
end up owning and paying for two homes when you only want one.
2. Basing the list price of your home on the price you would like to
than on market value.
Market value determines the price of your home - not wishful thinking.
A buyer wont pay more for your home just because you think you
need more money in order to purchase your next home. Find out the market
value of your current home by having a local real estate agent prepare
a comparative market analysis or by getting an appraisal from a local
appraisal firm. This will tell you the value of your home based on comparable
sales information. With this information, you can determine an accurate
list price for the current market value.
After you know what your home is likely to sell for, ask your agent
to prepare a seller's net sheet. It will tell you approximately how
much cash you will receive from the sale. Then visit a mortgage broker
or loan agent to get pre-qualified for a mortgage. This will let you
know what price home you can afford to buy.
3. Failing to get a pre-sale inspection before listing a home for sale.
Sellers are often required to pay for repairs when they sell their
home. They may also be asked to correct other defects. Sellers who know
the condition of their home before they sell are in a better position
to negotiate a firm sale because they can disclose existing reports
on the property to buyers before they make an offer.
4. Putting a home on the market before it is spruced up.
Buyers and real estate agents remember what they see. Their first impressions
are lasting ones. If a property looks a mess when it hits the market,
that is how agents will remember it.
Most people lack the vision to imagine what the home will look like
when it's fixed up. It's usually better to delay marketing a home until
it's spruced up for sale. Most buyers use agents to purchase homes and
agents are most excited about showing and selling homes that are in
5. Refusing to reduce a listing price that is too high for the market.
Its hard to be objective about the value of your home. This is
why it's important to get a professional opinion before setting a list
price. Over-priced listings often take a long time to sell. Then they
often sell for less than they would have if they were priced right to
begin with. Its natural to want to get the most money possible
when you sell. Competitive pricing is the way to achieve that result.
If you find that your list price is too high for the market, reduce
your price sooner rather than later. The longer it sits on the market
unsold, the lower the ultimate selling price is likely to be.
6. Refusing to counter a low offer.
Sellers want to sell high; buyers like to buy low. A low offer from
well-qualified buyers is better than no offer at all. A high offer from
unqualified buyers only leads to disappointment. The price buyers offer
is not the most important part of their offer - if they are willing
7. Insisting on being present when the home is shown to prospective
One way to discourage buyers from buying your home is to be home during
showings. For buyers to decide to buy a home, they first must discover,
and discuss, all of its flaws. Buyers are reluctant to say anything
negative about a home in the seller's presence. It's best to leave your
home when it's shown to prospective buyers.
8. Listing with a contingency to find a replacement home.
This is like saying that your home might be for sale. Serious buyers
make offers on homes that are definitely for sale. Otherwise, buyers
could wait in vain for unrealistic sellers to find an acceptable replacement
Sellers often want a contingency to find a replacement home so that
they don't have to move twice. To avoid having to move to an interim
rental, list your home with a provision that you may need to remain
in possession and rent back the property for a period of time after
closing. At least, the buyers know they have bought a home, even if
they can't move in right away.
9. Setting up a complicated showing procedure that discourages showings.
A home that can't be shown, can't be sold. The easier it is to show
a home, the more often it will be shown, and the quicker it will be
sold. There is usually a direct correlation: the more showings a home
receives, the less time it takes to sell.
10. Refusing to do anything get your house ready to sell.
The way most people live in their homes is usually very different from
the way a home should look when it goes on the market. In order for
someone to want to buy the home, they must be able to envision themselves
living there. Most sellers have to "declutter" and clear their
homes - at the very least.
Often there's quite a bit more work that needs to be done before home
is ready to sell. In order get the highest price possible when you sell
a car, it's wise to have it detailed so it looks its shiny best. The
same concept applies to selling houses. Buyers pay a premium for homes
that are in move-in condition.
Mark Lummis. Any reproduction of this site is prohibited.
Website Design & Hosting: BDwebs.net