How to Ensure You Get the Most Net Proceeds in Selling Your Home?
Mahadev Desai is the Founder and CEO of gharpedia.com and SDCPL a leading design consultancy firm having strong national presence. He has a degree in Civil Engineering (BE) and Law (LLB) and has rich experience of 45 years. Besides being the Editor in Chief, he also mentors team at GharPedia. He is associated with many professional bodies. He is also co-founder of 1mnt.in the first in Industry software for contractors’ billing. He is a voracious reader, edited 4 books, and pioneer of book reading movement in Gujarat, India.
It’s typical for homeowners to know how much money they’ll get in selling their home. They would do everything to increase the value of their property. But despite costly home improvements, some buyers might not be willing to pay for what you think your home is worth. It’s because every buyer is different, and they give importance to various factors.
However, it should be noted that the highest offer won’t always leave you with the most money, and you might not recoup the amount you’ve spent on significant renovations. According to financial experts, a successful home sale gives you an enormous opportunity to secure your financial future.
Thus, we’ve highlighted below how you can ensure that you get the most net proceeds in selling your home.
Determining Your Home Sale Proceeds
Not everything you get from a home sale will end up in your pocket, bank account, or wherever you intend to spend it. Note that it will cost money to sell your home, and each cost will be subtracted from the total amount you received from the sale. Once you sell your home, you’d realize that your net proceeds are not the same as your home sale price.
Net proceeds are the final amount you receive from your home sale after all expenses have been discounted. Depending on the property you sold, the costs might be a small or substantial amount. It is crucial to know all the potential costs that take up the home sale to ensure you get the most profit.
The costs may vary based on your property, but typical transactions include the following:
- Title, notary, and transfer taxes
- Broker’s commission
- Legal, appraisal, and regulatory fees
- Repair and staging costs
- Advertising costs
What’s left after deducting all these expenses will be your take-home money. Ensure that you review everything before taking any action, such as pricing your home and putting it on the market. Thus here at sundae, calculate your net proceeds to the extent of it and have your favorable profits.
Selling Your House with The Most Profit
What you do in the home selling process has a significant impact on how much money you’ll get in the end. That’s why you must have a plan in place that will guide you throughout. Remember that selling your home can be stressful in so many ways, and any mistake can compromise what you’d want to achieve in your home sale.
To help you make a well-informed decision and sell your house with the most profit, here are some steps you might want to consider.
01. Get a Home Inspection before Selling:
Getting your home inspected before putting it on the market can help maximize your profit. First, it gives you a heads-up if there are some issues that you need to fix. Remember that any serious buyer would be willing to pay to inspect your home, and they might negotiate a lower price once they discover some problems you didn’t know about.
Such cases will cost you a lot of money and slow down the sale, or worse, the buyer might call off the deal. But a pre-inspection is an indicator that you’re upfront about the property. In effect, the potential buyers will be more at peace and confident with your home and its sale price.
02. Price Your Home Appropriately to Maximize Net Proceeds:
Figuring out the right price for your home is essential to maximize your home sale proceeds. But doing so can be tricky. As much as you want to make the most profit, you would also have to attract buyers and sell your house fast. Note that potential buyers would start to doubt when a house sits in the market for too long.
To prevent that from happening, you have to price your home appropriately. If you price your home too low, you risk a deal less than you desired. But if it’s too high, you might scare off buyers. Try to understand your local market and compare every similar home that’s been listed over the past six months. It’s an excellent place to start when pricing your home.
03. Consider Right Timing to Get Most Net Proceeds in Selling Your Home:
Time is a critical factor in selling your home. It can affect how long you’ll have to wait to sell at the right price you’d prefer. If you don’t want to make an undesired deal, you have to know when is the best time to sell your home. The first step to making it possible is to understand the seasonal trends in the real estate market.
According to research, spring is when homes sell the fastest, that’s why it’s often considered the best time to sell a house. However, it doesn’t necessarily mean that it’s also the best time for you. You must have to think about other factors, such as your home’s shape, financial situation, and local market conditions.
04. Work with a Real Estate Agent:
Although it’s possible to sell your property on your own, it can be a lot more complicated. Bear in mind that several changes can happen at any time in the real estate market, and it might be hard to keep up if you know nothing about the field. But working with the right agent can make it much easier to set the appropriate price, prepare your home for listing and sell it at the right time.
Selling your home can be an overwhelming process. But with thorough planning and the right expertise, you’ll surely get the most proceeds from your home sale. Just remember not to let your emotions get in your way. Because whether you like it or not, selling your home can also be an emotional grind.