Selling your property is a big decision that comes with a lot of weight. Although it’s tempting to jump on it early and get it out of the way, this isn’t always the best decision. Instead, it’s a better idea to wait and ensure that you know the full picture before you get to selling.
These five items are important to know, whether you’re selling your first property or your tenth, and are why it’s a good idea not to jump in too quickly.
1. Check If You Can Reno to Profit
Sometimes renovation is the answer. Do you have a section of your property that needs work, but you’ve put it off? Sometimes this work could be worth a lot of money if you’re willing to invest time and resources.
This could mean adding another building like an inlaw suite or giving yourself the chance to add to the building itself. Land buyers are looking for more property, more space and are willing to pay more money to get it.
Adding an entire bedroom can add over fifty thousand dollars to the value of your property.
2. What’s The Cost of Selling This Property?
Selling property isn’t free. There are fees you’ll have to face, from taxes to the cost of an agent to dozens of other items that all show up on the seller’s side of the closing costs.
If you’ve only owned the property through a mortgage for a couple of years and don’t have any equity in it yet, you could be throwing away money by selling early. The earlier you sell, the less money you get back, and the more you’ll have to pay out of pocket for these closing costs.
On top of this, if you wait too long to sell, you may be stuck having to include property taxes for it another year of taxes. It’s a better idea to get this home sold before then to save yourself the headache.
3. Are Minor Repairs Necessary to Sell?
Some properties have areas that could use some work, but it’s hard to tell if it’s bad enough to make it vital that you correct these issues before you sell. Whether or not you do this depends on the market you’re in, what your budget is, and how large of a problem it is.
If you’re nervous about an unfinished basement or a bathroom that hasn’t been updated: leave it. These projects don’t have a high return value. If, instead, you’re noticing that the roof is looking rough, replace it and then add that to the cost of the home.
A new roof will lure in plenty of buyers in no time.
4. What Sets The Property Apart?
When you look at the property you’re selling, what parts of it set it apart from the other properties on the market? Is it more spacious? Has it been updated more recently?
Think about what you could do to bring out the most unique and interesting features it has. Whether it’s exposed brick, a beautiful garden in the backyard, or an older and beautiful staircase: ensure that photos of this show up in the listing and that people get a chance to see how special this property is.
5. Is This The Best Market to List it In?
The market you list your land for sale in matters as well. Unfortunately, you can’t control what market the economy is in, and you only have to hope it’s a sellers’ market. This market means that you have the opportunity to request more money for what you’re selling, and you can even start a bidding war.
This market is also fantastic because it means that you’re more than likely to sell land faster than you would in a buyers’ market.
In a buyers’ market, you have to be more careful. You could wait until it loops back around to a sellers’ market, but there’s no guarantee how long that will take.
If you can wait it out, consider renting out your home month-to-month until the market reaches a point that makes you more comfortable.
Nobody can predict when this will happen, so if you decide to wait it out, make sure that you get advice from an agent or realtor beforehand to ensure it was a good choice.
There’s No Perfect Time to Sell
Despite all of this planning, thinking, and work: there’s no way to ensure your property will sell quickly or for as much money as you wanted. It’s a good idea to keep an eye on the market.
You shouldn’t obsess and think small changes mean that big differences are coming, but looking at the market will help you identify the trends as they come and go. Take your time, repair and renovate where you have to, and your home will sell in no time.