We all like to save as much money as we can in every transaction we do. We also know that real estate transactions can be quite expensive with or without hiring a Realtor®. Interestingly, the data shows that homeowners who work with a Realtor® effectively save money due to their property selling for a greater price than what a for-sale-by-owner gets. What follows are 3 things you can do to save money selling your property.
1 - Use a Realtor®
I know this sounds counterintuitive because you’re going to pay a commission when your property sells, and even biased since it’s on a real estate broker’s blog. But the data has consistently shown that hiring a Realtor® will save the home seller thousands compared to them selling it by themselves.
How is this? Because most sellers either overprice their house and end up having to drop their price drastically over such a long period of time that they eventually sell their property for much less than they first thought they could. On the other hand, the homeowner will underprice their property and sell it quickly, but well under market value. Either way, this usually costs them as much as the commission would have been if they hired a Realtor®.
Look at it like this; if you believe your property is worth $350k and you want to sell it yourself you would offer it for $350k, right? Now, if your price is higher than a price derived from a properly done market analysis, you will have to lower your price little-by-little until it’s sold. Most often, the home seller will drop the price further than thought they ever would just to sell their property. They may eventually sell their place for less than $300k. Even if the property’s true market value was $350k and a Realtor® erroneously listed it at $330k, you would still net around $2k more than doing it yourself. And bonus, the Realtor® is doing all the work and paying for advertising out of their own pocket, and pre-qualifying buyers which minimize the number of strangers walking through your home, and so much more!
Related article: Should You Sell Your Home Yourself Or Hire A Realtor®?
2 - Be competitive with model homes and open houses
It’s not necessary to spend thousands for a professional stager when you can just view some model homes that have already done that. Take some pictures, write some notes, and you’ll have an idea of what will work for your house. If you’re not sure it will work well for your particular home, you can arrange for a consultation with a professional home stager for some tips and ideas for staging with your current furniture and floor plan, versus paying for a complete staging service. You could save you hundreds compared to professional staging this way.
Related article: Objectivity Is Required For Effective Home Staging
3 - Negotiating price and terms
Far too often homeowners agree too quickly during the negotiation of price and terms. You really want to get the most out of the negotiating process in a way that benefits the seller and the buyer. For example, your property has been listed for $350k and you have an offer on the table for $330k. If the property hasn’t been on the market for too long you have a good chance of a successful counter-offer. So you counter with $340k. If they accept, great. But maybe they return $335k? You could then offer $338k and possibly offer an incentive like a home warranty. The point is, don’t overlook negotiating for as long as it’s kept fair and unemotional. When insults and getting catty enter the negotiations that neither party gets what they want. Talk with your Realtor® about negotiating any offers to maximize your profit without alienating your potential buyer.
Call us at EP Realtors® and ask to speak with one of our experienced Realtors® about any of your real estate needs, (407) 704-8030.
Here are some related articles you may have missed:
- A Beginner’s Guide To Real Estate Comparables (Comps)
- 3 Tips To Overcoming Home Selling Obstacles
- 4 Ways To Increase Your Homes Value
- When Is It Time To Lower Your Asking Price?
- 4 Dangers Of Overpricing Your House
- Why There’s No Reason To Wait To Sell Your House
- All articles in our Home Selling category