10 ways to maximize profitability during your home sale
We are right in the middle of the peak home selling season, so I thought I’d discuss something on every home seller’s mind: profitability! How can we maximize our home sale results? Let’s look a few of the ways:
- Don’t under improve or over improve the home prior to selling. A little can go a long way, so know your audience, what is important to them, and on the flip side, understand what can be left undone without negatively impacting your sale!
- Be picky on stagers and photographers. I’m sure you’ve run across tacky, cheap, and outdated staging and seen some horrible photos online. Guess what, they cheapen your house too. Time to be picky!
- Price the home strategically for the current market dynamics. I discussed pricing strategies last month.This is not a one size fits all concept. The house, market timing, and target audience play into how you should price your home. If done incorrectly, you will leave money on the table!
- Remember to disclose what you know. Forgetting or “forgetting” to explain something about your home can come back to haunt you either during escrow, or worse, after the close! Failure to disclose is the biggest cause of real estate lawsuits.
- Choose the right launch week for your home. In California, we can sell a home at practically any time of year. I try to avoid 3 day weekends and holidays as a way to optimize the number of visitors I get during that critical first week.
- Choose the best offer, not just the highest price. This is a complicated topic, but simply put, you need to not only look at the money, but at the risk, the terms, the buyer motivation and the professionalism of the buyer’s agent if you want to have an escrow that will actually close.
- Counter offer carefully. Sometimes you can get more money or better terms by counter offering. Sometimes you can scare off a skittish buyer and they’ll disappear on you. Proceed with caution! A good agent will guide you.
- Anticipate appraisal issues. You get an incredible offer that is WAY higher than you expected. Before you blindly sign it, ask, will the house appraise? Can the buyer afford to move forward if it doesn’t? Will they want to renegotiate? Or will they get scared and cancel? Assess motivation and financial ability before you choose their offer.
- Consider securing a formal backup offer as leverage and a safety net. Signing a buyer into second position can be a great way to encourage the first buyer to behave themselves during your escrow, and if they don’t, you’ll have a back-up ready to go.
- During escrow, stay on top of the buyer’s deadlines. If the buyer is delaying or not performing to the contract, you’ll want to understand immediately if there is something wrong and if the escrow is at risk. Being quick to resolve issues can save you thousands of dollars.
There are so many other ways to have an incredible and profitable home sale! If you have any questions, call me. I would love to hear from you.
Also see: Strategic Insights into Home Pricing: Maximizing Value, Minimizing Risk
Warmly,
Kirsten Reilly, Broker Associate
(408) 835-2962
