There are many factors that can influence the price your home sells for. One of the biggest factors that will determine the value of your property is the sale price of similar homes that have recently sold in your neighborhood. Other factors include its age and condition, size and usable space, curb appeal as well as market and economic conditions such as interest rates and the availability of lending. In this article, we will present some helpful tips to ensure your house sells for the best price.
Understand the Housing Market
Before you decide to list your house for sale, take the time to understand the local housing market. Even if your home is in a prime location and in excellent condition its sale price can still be impacted by the number of other houses that are for sale in the area and the level of demand from buyers.
The main thing to understand is the difference between a buyer versus seller real estate market. A buyer’s market arises when there is a surplus of homes for sale compared to the number of buyers. This can force house prices down and cause homes to stay on the market longer. In this situation, buyers have little competition and plenty of leverage to negotiate a sale price and other requests.
If you’re selling your home in a buyer’s market, realize buyers have plenty of options to choose from and can afford to be picky. Consider ways to make your home stand out from the rest and be prepared to lower your asking price. You might also have to make other concessions such as offering to pay for repairs or other costs to secure a sale.
A seller’s market occurs when there is a shortage of available homes for sale and the demand from buyers exceeds the supply. In this market, multiple buyers will often compete for the same property resulting in a bidding war that pushes up the asking price. Sellers will also have the upper hand in negotiations and greater opportunity to reject offers that are too low or come with too many demands.
Selling your home in a seller’s market will allow you to take advantage of this favorable treatment enabling you to maximize the sale price of your home.
Timing of Your Sale
In addition to knowing the state of the housing market, it’s a good idea to know which times of the year are the best to sell a house.
According to the National Association of Realtors (NAR), Springtime is considered the best time of year to list a house. This is the period when demand from buyers is at its highest. With the milder weather, people are more inclined to go house-hunting and the blue skies favor photography when it comes to marketing a house. As it can take a few months for a housing transaction to complete, many families also favor this time of year as it coincides with the summer break and the end of the school year.
Conversely, winter tends to be the slowest time of year for selling a house. With the colder weather, shortage of daylight and the busyness of the holiday season, many people retreat from house-hunting at this time of the year and wait until the weather is more conducive to viewing properties.
As a seller, taking advantage of the advice in this article can help you to maximize the sale price of your home.