When you go to sell a house in Germantown, one of your primary goals is to make as much money as possible from the sale. The profits that you make from the sale of a house can be rolled into a new home or used to fund a new investment; in either case, it’s worth the effort to ensure that you get the most possible from the final check. Unfortunately, there are a number of things that can eat into your profits and end up depleting the money you get from the sale. So how can you lower the cost of selling your home in order to maximize your profits? We have a few tips that may help you.
How to Lower Costs and Maximize Profits from Your Home Sale
Know how the costs add up.
The first step to lowering the costs of selling is to know where those costs are coming from in the first place. When you know that, you’ll be able to formulate a plan about how to lower them. Your costs may vary, but in general, most homeowners can count on these costs at the time of the sale:
- Home repairs and staging. Chances are good that you’ll need to do some repairs to your home before you get ready to sell it. There are a lot of little issues that we’re willing to put up with while living in a home that will need to be addressed before someone else moves in. You’ll need to stage the property for showings, too, and that can involve anything from painting the walls to renting furniture to putting your own stuff in storage.
- Agent fees. Your real estate agent is going to take up to 6% of your sale price. Often times, there are two agents involved in the transaction (the seller’s agent and the buyer’s agent) and they will each take up to 3% of the sale price as a commission. While at first glance 6% doesn’t seem like much, it can be painful at the time of closing.
- Other closing costs. The buyer is usually in charge of picking the closing company, which means the seller will be at the mercy of the closing company for their fees. These can include titling fees, paperwork processing fees, and other line items that can add up fast.
When you start working with a broker, talk to them about their fees and what costs you can expect at closing. They’ll be able to help you determine what costs you could be facing at the closing time.
Use a flat-rate estate brokers.
One of the biggest expenses you’ll be facing in the sale of your home are the fees imposed by your real estate agent. They’ll be taking somewhere between three and six percent of your sale price, and that’s a considerable chunk of your profit. Fortunately, there are a number of options available in the real estate world that can help you avoid those fees. One option is to look for a flat-rate real estate broker. These companies often offer all of the same services that a traditional agent offers, but at a flat-rate price so you know exactly how much you can expect to pay. It’s worth shopping around and comparing services to determine if this could be a more affordable way to sell your home.
Do any repairs yourself.
Repairs and staging costs can accumulate rapidly. Sometimes it can leave you feeling like selling your home wasn’t worth it. One way to combat these costs is to do a lot of the work yourself. You can save thousands by putting yourself and your family to work in the evenings and over the weekend to do a lot of the little repairs that need to be done around the house before it goes on the market. Things like interior painting, cleaning, and most aesthetic repairs can easily be done on your own. If more advanced repairs need to be done, though, it’s likely worth it to invest in the services of a professional. They’ll be able to complete the work quickly and ensure it’s been done right so there are no issues during the inspection phase of selling your home.
While a lot of companies are going to present their fees as written in stone, it’s rare that they are actually. Whatever fee you get presented with, whether it’s from the closing company, your real estate agent, your lawyer, or even a plumber who is doing some repair work for you, don’t be afraid to negotiate. The worst that can happen is that they tell you the fee isn’t negotiable. But in a lot of cases, they’ll be willing to work with you, especially if you can offer some kind of benefit in return (such as, for instance, recommending their services to a friend who is also selling their home). If someone tells you that their fee isn’t flexible, don’t be afraid to shop around a little bit before you commit, too. You might find a better deal out there.
Know your tax benefits.
Another area where you can get hit with a big profit loss is on your taxes. Your circumstances will vary depending on what you are doing with the money from the sale; if you are using it to purchase another home, you’ll face a smaller tax bill. If you are sticking the money in your bank account, though, be prepared to pay out a hefty amount on our tax bill. There are a number of ways to lower your tax obligation, though, including taking deductions from things like advertising the home, the closing costs, and even your agent’s fees. This is an instance where very often hiring a professional may be able to help you save money in the long run; an accountant may be able to help you capture more tax deductions that reduce your bill and end up paying for themselves.
Want to Keep More of Your Money?
Then you need to sell your home through Exsell Real Estate Experts. We’re a flat-rate full-service real estate company who can help you capture the benefits of marketing your home through the MLS without sacrificing profits from your final sale. You can visit our website to see how much you could save by signing up for our services versus using a traditional real estate agency. Then get in touch with our team to start the process to list and sell your home. Our team will make it easy and affordable! Simply give us a call or contact us through our website and we’ll get you started right away.