Are you getting ready to put your home on the market? If so, you want to pay attention to these tips, which could save you a lot of headaches and money. In the past few years, we have seen a rise in the cost of homes. In fact, mortgage rates have increased while home appreciation is beginning to slow down. Although people are selling homes, the time on the market before an offer is made is somewhat slow. Because of this, we also see home investors starting to pull back, not wanting to be stuck with too many properties and no profits.
We have even seen builders starting to become more competitive, pushing harder than ever before to sell. Today, approximately 40% of builders are now offering some kind of non-price incentive, which ranges from free landscaping to plasma television to home upgrades, all encouraging people to buy. The bottom line is that for buyers, this is their market. Today, people buying homes benefit more than sellers do, which is why knowing how to sell fast and at a profit is crucial.
For starter, you want to be realistic about your expectations when selling your home. That means setting the price where you will make a nice profit but not price yourself out of a sale. In addition, be prepared to sit on the house a little longer than expected. In this case, you might have to wait up to six months or longer before your home sells. Then, be prepared to make some changes to help your home sell faster, which could be new carpeting, kitchen cabinets, new bathroom, landscaping, etc.
Another option would be to think about paying the buyer’s discount points. In this case, instead of reducing your original asking price, you would offer to pay points. In fact, if you are flexible, you might even help the buyer with the interest rate. Remember, one discount point will reduce the mortgage rate for the buyer by one quarter of a percent. Therefore, the buyer ends up with a lower monthly payment, along with the benefit of deducting the discount point on taxes.
Finally, if you are thinking about putting your home on the market, you might give some thought to refinancing. For instance, if you currently have an ARM mortgage loan that will soon be adjusting, it might pay to have the loan refinanced to a FRM. Although you would need to go through the closing and pay closing fees, it could end up saving you thousands of dollars in the end.