Homeownership is one of the greatest assets one can hold. The ultimate goal of realizing a profit is a primary reason many purchase property.
Homeowners sell for a wide variety of reasons. If you are ready to make a move OR if you inherited a property that you do not intend to hold, you have OPTIONS! Which selling strategy works for one homeowner may be different for another depending on their situation.
The first question you should ask yourself is: ‘what is my primary goal with selling this home?’
Is it to make the maximum proceeds? Is it to move the property fast with little investment? Do you prefer the easiest path to closing with the fewest complications/contingencies?
You likely said “Yes. Yes. Yes.” However, it’s important to prioritize your goals in order to choose the best strategy for you.
Not every Home Seller will fall exactly into one of the categories below, so sometimes we will discuss a combination of strategies, but let’s briefly look at three SELLER SOLUTIONS.
‘I WANT TO Maximize MY Proceeds’
Maximizing proceeds is the direction most homeowners prefer, but also typically involves an investment in time and money to properly prepare the home for sale.
Remember, appraised value is not always the same as market value. Market value is the price homebuyers are willing to pay for a home. Just because the automated valuations on a popular home website tells you what your estimated home valuation is does NOT mean that is what a buyer is willing to pay.
Many factors go into a buyer’s opinion of value. Location is a big one.
Consider the same exact new construction house built in two different communities. Although they are identical properties, one sold for much more than the other?
Why?
The higher sale likely was in a more desirable location. Perhaps a highly rated school district. Or maybe it’s in a walkable community close to boutique shopping and dining. Then there are lifestyle perks that draw interest such as lakes, rivers, parks, or other landscapes.
This is why it’s important to be hyper focused on your neighborhood when comparing values.
With that said, even within your neighborhood you may notice that two similarly sized homes in a similar location receive a dramatically different buyer demand and sale price.
Why?
This is almost always due to the home’s condition. Homes that are well maintained and appear ‘turn key’ will bring the highest price. Buyer’s are willing to pay more for a property that they don’t feel needs any additional investments put in up front.
If you want to maximize your profit, you will need to deliver a well maintained, aesthetically desirable home to the market.
A real estate professional along with a licensed home inspector can give guidance on which projects you may need to address prior to listing.
Vist my WOODS PROPERTIES website to LEARN MORE on how I can help.
2. ‘I PREFER AN ‘AS IS’ Sale’
For those who do not have the available funds, time, or interest in order to maximize the value, but still want to fully expose the home on the MLS, you have the option to list the home ‘As Is’.
An ‘As-Is’ sale is one where a home is listed on the market with minimal or no repairs offered. A seller must be fully transparent about the property’s condition and disclose any and all known defects to buyers. Intentionally withholding information about property defects is illegal. Discovery of hidden issues post sale can expose the seller and their broker to legal action, so full disclosure in writing is critical!
An ‘As-Is’ sale involves the Seller’s understanding that the value will be discounted and the buyer’s demand may be reduced.
A good portion of prospective buyers prefer turn key homes, but for a discounted price, they may be willing to take on the projects that the Seller is unable to address.
3. I JUST WANT A QUICK CASH OUT
If you simply want to wipe your hands clean of the property and move on, you have the option to sell to an investor.
Property investors are looking to purchase homes in need of repair in order to rehabilitate them and resell them. This is typically going to be a cash buyer who purchases the property without any contingencies. It’s a stress free option that can turn around very quickly, but will net you the lowest return.
Reaching out to a trusted real estate professional to connect you with investors and guide you through this type of transaction is in your best interest.
If you are considering a move, or have inherited a property you need to sell, the first step is to have a conversation with a real estate broker regarding your options. For those of you with a home in the Greater Philadelphia region in either PA or South NJ, contact Emily Woods to discuss options available to you.