If you are selling a real estate property, you should be on the lookout for anything that may erode the actual amount you will pocket from the sale. For example, you need to minimize the expenses of the sale so that they don't erode your sale's proceeds too much. Here are some of the tips for minimizing these expenses:
Try DIY Repairs
When you decide to sell your home, you will notice little issues here and there that need to be fixed. In fact, even your agent will advise you to make your home not only functional but also presentable to prospective buyers. This may mean cleaning the gutters, painting the front exteriors, cleaning the chimneys and similar things—it all depends on your home's current state. Make it a point to do as many of these things as you can without hired help to reduce your repair expenses. Note that you don't have to fix everything; only fix what is necessary.
Negotiate Agency Fees
In most sales, the commissions for both the seller's and buyer's agent come from the proceeds of the property sale. Therefore, it's in your best interest to minimize these commissions. Most agents will ask for 6% (to be shared between both agents), but the figure is slightly negotiable. Offering to do some of the legwork or listing your property during the off season are some of the incentives you can use to get the agents to lower their fees.
Minimize the Closing Costs
Buyers usually bear most of the closing costs, but not always. Many buyers ask sellers to shoulder some of the closing costs, especially in a buyers' market where these seems to be more listings than interested buyers. If you have agreed to such an arrangement, it's in your best interest to minimize the closing costs too. Here are some of the tips that will help you minimize them:
- It's likely that you know the area better than your buyer; help them access service providers with low fees.
- Only shoulder the minimum closing costs that you have to.
- Ask for a reissue discount on title insurance if you bought the house within the last three to five years.
These are just a few examples of how you can minimize home sale costs. Work with an agent from the beginning of the sale, and you are likely to see more savings as a result of the agent's experience.Share