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When you think about selling your home, you may see dollar signs. After all, you may have already calculated the amount of equity you have in your home, and selling the property will essentially turn that equity into cold, hard cash. You may even have plans to use all of that money for a new home purchase, to pay off debts, or to take a vacation.
While some of your equity may be available to you through the sale of the house, the reality is that you also stand to lose a considerable amount of this equity through various fees, buyer negotiations, and more. If you want to save money while selling your home, consider these tips.
Make Thoughtful Improvements and Upgrades
Repairing and upgrading your home can directly eat into your profits from selling the home, but some efforts can actually help you to sell your home for top dollar. For example, if your walls are a brilliant shade of orange or pink, there is a good chance that a buyer will make a lower offer and will ask for a paint or decorating allowance. It may, however, only cost you a few afternoons and a couple hundred dollars for paint and supplies to overcome this hurdle. Choose your improvements and upgrades with care to decrease negotiations and allowances to the buyer.
Price Your Home Right
When a home is priced too low, the seller may get a quick offer, but the seller may still lose money because the offer is lower than it could have been. On the other hand, when the home is priced too high, the seller may waste money continuing to pay for a mortgage for long months while you wait for an offer to come in. The longer the house sits on the market, the more likely it is for a buyer to make a low-ball offer on the house. Either way, you stand to lose money. Ensure that your home is priced right for the market to get the best results.
Negotiate Agent Fees
The seller is typically responsible for paying real estate agent fees to both the buyer agent and the seller agent. You may reasonably pay as much as six percent of the sales price in agent commissions, and there are instances when this is even higher. You may negotiate agent fees and other expenses in the contract to save money at the closing table.
Sell Your Home on Your Own
Another idea to avoid paying agent fees is to sell the home on your own. By going down a for sale by owner route, you may still have to pay the buyer’s agent a commission, but you can avoid having to pay your own agent a commission. If you choose to sell the property on your own, consider how you will market it. More than that, carefully research the market or even obtain an appraisal before you list it so that you price the home appropriately.