The pandemic saw many happy homeowners sell their houses for far more than they expected as demand outstripped supply. Not surprisingly, the majority of people decided not to move house as Covid hit the US and lockdowns were introduced.
The decline in homeowners wishing to sell led to a shortage in the housing inventory, and buyers who were committed to moving sent prices soaring. Suddenly, house prices skyrocketed.
House sales continue to drop in the US, but experts predict that prices will remain strong despite fewer buyers. If you hope to see maximum proceeds from your house sale you'll need to stand out against the competition.
How can you get the highest offers for your home?
If you need to sell your property quickly this is still possible in the US today. Despite a month-on-month decline in existing house sales across 2022, homes can be sold quickly still.
The best way to achieve a quick house sale is to be willing to accept a below-market offer for the property. Investors such as Cash House Buyers USA buy homes to renovate and flip, and buy homes very quickly. However, if you sell your house to a cash buyer like this, you won't see maximum proceeds.
Your home is likely the biggest investment you will make, and if you want to see the best return you'll have to put in some work, and perhaps have a little luck too.
Below are five boxes you need to check if you want to achieve market value or above from your home sale.
You will need to choose how you are going to sell your home early on, and there are benefits and cons to all the available options.
For fast salesAuctions and cash buyers are the quickest way to make a house sale today, but you won't receive the maximum amount possible this way, though, there are some exceptions if a home isn't easily marketable.
If your home is distressed and in need of serious repairs and renovations, then selling at auction or to someone who flips homes might be your best option. If you need a lot of work carried out on your home then it may not be marketable through the normal channels such as realtors.
Traditional house sellersRealtors are the choice for the bulk of people selling homes. A real estate broker will do all the work for you including marketing and arranging viewings. And realtors can remove a lot of the stress associated with selling a home.
Using a real estate agent will normally mean you have someone motivated to sell your home on your side. Realtors work on commission so it is in their interest to sell your home for the highest price, and as fast as possible.
Alternative marketing channelsYou could choose to go through the FSBO or for sale by owner route if you are prepared to put in the work. FSBO is not new but is becoming a more popular way to sell a home now, but unless you are experienced in this area, it could be very stressful and time-consuming.
Understanding when you should market your home could make all the difference in how quickly it sells, and how much you make.
According to one study, June and August see the most home sales each year. Warmer months are the better times to sell a house, and holidays are typically the worst. Interestingly, the day after Valentine's is one of the best days of the year to sell a home. Presumably, this is because love was in the air on the 14th and couples make a commitment to put in an offer the very day.
Whatever the reasons for certain months being better than others for house sales, you must consider this as it can make a big difference in house prices.
Before you sell your home it can be wise to hire an inspector. A seller's inspection is an excellent way to find out what problems your home has before any buyers find out.
You can increase equity before listing your home by carrying out necessary repairs, adding a splash of fresh paint, and decluttering. But, carrying out expensive renovations might not bring the returns you are hoping for.
If you want to see the maximum proceeds from your house sale then consider any investment wisely. For example, if you replace your old garage door you will not only enhance your curb appeal, but you can expect to see over 98% of the costs recouped.
Conversely, a major kitchen remodel could see you outlay over $80,000 only to lose over 40% of your investment.
Setting the price of a home isn't easy but your realtor will advise you. Real estate agents use something called comparables to set the price of houses.
You can also do some research here by carrying out comparables yourself. By looking at house sales in your area of comparable properties you will get an informed view of what you should really hope to see from your house sale.
The outlook of the US housing market in 2023 is mostly positive for homeowners as prices aren't expected to drop dramatically any time soon. So, don't price your house too low, but do collect data from comparable recent sales to get a realistic valuation.
If you are selling a home you have every right to ask buyers for proof that they have the funds to complete the deal. You can ask for proof of funds which will show that the buyer has ample money to finalize their house purchase, or at a minimum ask for a pre-approval letter.
A pre-approval letter is given by a mortgage lender to show proof they are willing to lend money to someone to buy a home. However, it doesn't guarantee that the lender will approve a mortgage against your particular property.
Avoid property chainsYou should investigate what chain is involved on your buyer's side, and avoid one on your end too. If you end up in a property chain it can cost you more in expenses, and can often result in the sale collapsing.
Property chains can increase stress, and there is also a much greater chance that a buyer will pull out if a house sale drags. If this occurs then you will have to begin all over again and wait for a buyer.
There are many other things you can do to help your sale go quickly, and attract the best offers from buyers. Updating the facade of your home and elevating your curb appeal can do wonders, as can putting items in storage to give buyers the impression your home is spacious.
Choosing your marketing channel, carrying out repairs and in some cases renovations, pricing your home correctly, and avoiding property chains, can help with a quicker house sale, and hopefully, maximum proceeds.
