Bay State Home Sales Team's Blog
If you’re a homeowner considering selling your home as an investment property, timing is important. From a financial perspective, just as you probably bought strategically, you want to sell strategically too. The trick is knowing when the right time arrives. Here are four common metrics people use to determine when it's time to sell their property.
Amount of Equity in the House
A primary factor to look at is how much equity is in the home. Ideally, to sell a home as an investment, the seller can make a tidy sum. If mortgage payments are still owed, this may negate any potential profit made, but not necessarily. If you're looking to broaden your investment portfolio, be certain you can sell your house for enough money to pay off your debt with a sufficient amount left over to re-invest. If you don’t have enough equity to do this, you’re better holding off.
Market Conditions Are Good
Many owners who bought low and can sell high find this to be a strong motivator to put their property on the market. Since market conditions eventually shift to a buyer’s market, it’s a smart strategy to sell when the housing market favors the seller. Owners who have held their property for a long time or purchased as the housing bubble burst between 2007-2012, are likely going to make a better profit than investors who purchased when prices were at their peak.
Tax Code Advantages
Buyers are often motivated to sell if there are tax code advantages. For instance, the IRS currently offers a tax-deferred advantage to investors looking to sell one property to buy another. Under tax IRC Section 1031, sellers are required to find another property to purchase within 45 days and then buy it within 135 (180 days total).
By selling and making a similar real estate investment, investors can defer paying their federal and state capital gain taxes. It’s a good strategy to use if you want to leverage real estate and broaden your portfolio.
Taxes Are Going Up
If local taxes are going up, often buyers find this to be an incentive to sell. For instance, if a town severely limits commercial activity, the tax burden falls to homeowners. Over time, the tax bill may become too exorbitant. If you own enough equity in your property and the housing market is in your favor, high taxes might be your tipping point.
The home selling journey sometimes is filled with hurdles that make it tough for an individual to optimize his or her property sale earnings. Fortunately, there are several shortcuts that a home seller can take to boost the likelihood of enjoying a profitable property selling experience. These shortcuts include:
1. Hire a Home Cleaning Company
A home cleaning company can help you transform your house's interior from drab to fab. That way, this company can help you clean your home from top to bottom and ensure buyers can fall in love with your residence as soon as they walk through the front door.
Of course, not all home cleaning companies are created equal, so you'll want to research local options. If you allocate time and resources to assess the home cleaning companies in your area, you can find a business that provides quality services at a budget-friendly price.
2. Employ a Professional Landscaper
If your lawn is filled with high grass and weeds, it may be tough to alleviate these issues on your own. Thankfully, professional landscapers are available in cities and towns nationwide. With a professional landscaper at your side, you can get the help you need to bolster your house's curb appeal.
Remember, your home only gets one chance to make a positive first impression on prospective buyers. If you hire a professional landscaper to mow the lawn, trim the hedges and perform other lawn care tasks, you can quickly and effortlessly improve your residence's curb appeal. And as a result, your home will make a distinct impression on prospective buyers, which may lead to a fast, profitable home sale down the line.
3. Collaborate with a Real Estate Agent
A real estate agent understands the ins and outs of selling a home and is happy to share his or her housing market expertise with you. By doing so, a real estate agent will help you enjoy a seamless property selling experience.
Typically, a real estate agent will learn about you and your home selling goals and craft a personalized property selling strategy for you. A real estate agent next will promote your residence to buyers, along with host home showings and open house events. Then, if a buyer submits an offer to purchase your residence, a real estate agent will help you analyze this proposal and determine how to proceed.
Let's not forget about the comprehensive support that a real estate agent provides throughout the home selling journey, either. If you ever have concerns at any point during the home selling journey, a real estate agent is available to respond to them. He or she will help you make informed home selling decisions, and ultimately, achieve your desired results.
For home sellers who want to remove the guesswork commonly associated with the property selling journey, there is no need to worry. By using the aforementioned shortcuts, a home seller can streamline the process of selling his or her house.
If you want to enjoy a fast, profitable home selling experience, it helps to prepare as much as possible. In fact, if you craft a home selling strategy, you should have no trouble achieving your home selling goals.
Now, let's take a look at three tips to help you create a successful home selling strategy.
1. Consider the Buyer's Perspective
Think about how a homebuyer may perceive your house. Then, you can prioritize assorted home improvement projects and incorporate them into your home selling strategy.
For example, if your home's front lawn is messy and cluttered, now may prove to be a good time to hire a professional landscaping company. With support from this company, you can transform a subpar front lawn into a stunning one and bolster your house's curb appeal.
On the other hand, if you find that your home interior needs to be updated, you should perform assorted home interior upgrades. By doing so, you can enhance your house's interior and make it easy for buyers to fall in love with your residence.
2. Assess Your House Both Inside and Out
Ultimately, a home seller's goal is to maximize the profits from his or her home sale. If you include a home inspection as part of your home selling strategy, you can take the necessary steps to upgrade your house prior to listing it.
During a home inspection, a property expert will analyze your residence both inside and out. When the home inspection is finished, the property expert will provide you with an inspection report that details his or her findings.
Review a home inspection report closely. This report contains valuable insights that you can use to enhance your home's exterior and interior. It also may help you discover innovative ways to improve your house's value.
3. Collaborate with a Real Estate Agent
When it comes to crafting a home selling strategy, there is no need to work alone. Luckily, you can hire a real estate agent who can help you put together a successful home selling strategy in no time at all.
A real estate agent will teach you about the real estate market and help you set realistic home selling expectations. In addition, this housing market professional is happy to provide you with expert home selling insights to ensure you can optimize the value of your house.
Moreover, a real estate agent can offer comprehensive support at each stage of the home selling journey. He or she can help you list your house and promote it to the right groups of buyers. Plus, a real estate agent can provide recommendations as you review a home offer and ensure you can make an informed decision about whether to accept, reject or counter a proposal.
If you want to get the best-possible results from the home selling journey, it helps to establish a home selling strategy. Use the aforementioned tips, and you can craft a successful plan to sell your house.
Ready to add your residence to the real estate market? A home appraisal may prove to be a great first step.
With a home appraisal, you'll be able to understand the true value of your house. This comprehensive home assessment enables an expert home appraiser to evaluate every room in your home. Then, a home appraiser will provide details about your home's strengths and weaknesses.
Ultimately, there are many questions for a home seller to consider after a home appraisal is completed, including:
1. What did the home appraiser discover during the evaluation?
A home appraiser boasts in-depth home maintenance knowledge and insights. As such, this professional will do everything possible to identify problem areas with you home that you can repair before you add your residence to the housing market.
Consider the results of a home appraisal closely. By doing so, you can understand your home's strengths and weaknesses and search for ways to transform your house's weaknesses into strengths.
Also, it is important to establish realistic expectations for your residence after a home appraisal.
If a home appraiser discovers myriad problems with your residence, there is no need to worry. You can always repair these issues on your own or hire home maintenance professionals for extra help.
Or, if you decide not to complete home repairs following a home inspection, you should price your residence accordingly. That way, you can be honest with homebuyers about the pros and cons associated with your home and enable these homebuyers to make informed decisions about your residence.
2. Are there major or minor problems with my house?
What differentiates a major home problem from a minor one? The time and resources required to fix a problem often serve as key indicators about whether an issue can cause major headaches over an extended period of time.
For example, an oven light that has gone out can be replaced quickly and effortlessly. On the other hand, your home's obsolete, inefficient furnace may require thousands of dollars to replace.
Simple home improvements can make a world of difference in homebuyers' eyes. Following a home inspection, you may be able to find a variety of quick, easy and effective home improvement tasks that you can complete to enhance your home's appeal.
Be prepared to complete major home improvement projects as well. Remember, if you finish assorted home improvement tasks now, you may be able to help your residence stand out in a highly competitive real estate market down the line.
3. Which home repairs should I prioritize?
Home repairs should help you maximize the value of your residence. Therefore, you should prioritize home maintenance projects that will help you transform your ordinary residence into an exceptional one.
If you need help to determine which home repairs to prioritize, don't forget that a real estate agent may help you do just that. This real estate professional will work with you throughout the home selling process and ensure you can enhance your residence both inside and out.
Selling a house and getting a residence show-ready are two entirely different things.
If you list your house, homebuyers can evaluate it at their convenience. But merely listing a residence offers no guarantees.
Instead, a home seller may want to get his or her residence show-ready. Because if a house is show-ready, the likelihood increases that homebuyers will fall in love with this home as soon as they see it.
There are many quick, easy ways to get your home show-ready, and these include:
1. Clean and Declutter Your Home
Mop the floors, wipe down countertops and conduct various home cleaning tasks. That way, you can transform an ordinary home interior into an immaculate one.
Also, don't forget to declutter your residence as much as possible. If you evaluate your personal belongings, you can identify clutter and work to remove excess items from your house.
For those who need to get rid of clutter, you may be able to sell excess items at a garage sale or online. Also, you can donate excess items to local charities or give these items to family members and friends.
2. Revamp Your House's Exterior
Mow the front lawn, repair any cracked or damaged home siding and complete assorted home exterior improvements. By doing so, you can boost your house's curb appeal and help your home stand out to potential buyers.
Remember, your home's curb appeal may make or break a possible sale. If you allocate the necessary time and resources to revamp your house's exterior, you can increase the chance that a buyer will set up a home showing that could lead to a home sale.
3. Perform Last-Minute Touch-Ups
The final hours before a home showing can be stressful. Fortunately, if you know how to perform myriad last-minute touch-ups, you can boost the likelihood that your residence will make a great first impression on buyers.
Opening the blinds is a great way to brighten up your house prior to a showing. Furthermore, you should empty any trash bins to minimize the risk that unpleasant odors may emanate throughout your home.
Clearly, there's a lot that you can do to get your house show-ready. And if you need extra help as you sell your house, you may want to collaborate with a real estate agent as well.
A real estate agent is a housing market expert who understands what it takes to get a house show-ready. He or she is happy to provide home showing recommendations to ensure that you can stir up plenty of interest in your residence.
Of course, a real estate agent provides plenty of assistance throughout the home selling process too. This housing market professional will help you craft an engaging home listing, promote your residence to potential buyers and negotiate with a buyer's agent on your behalf. He or she will even respond to your home selling concerns and queries.
Prepare your house for a showing – use the aforementioned tips, and you should have no trouble getting your residence show-ready.