The residential real estate market is seeing some of its largest increases in a decade. In July of 2021, the average sales price of a home hovered around $400,000. Though it seems the market is cooling off somewhat, there’s still enough heat to keep prices high.
However, that doesn’t mean your home gets the same treatment when you put it up for sale. Some circumstances could prevent you from receiving a positive return on investment (ROI). Fortunately, there are ways to make this happen. Here are a few ways to ensure a minimum ROI when selling your home.
Avoid Paying Capital Gains Tax
The capital gains tax is the extra charge incurred on the sale of an investment. Generally, this takes place when a rapid increase occurs between the time of the purchase and when it’s sold. As a house is considered an investment, a capital gains tax could be applied at signing, thus lowering your ROI.
This doesn’t occur if you decide to sell your home decades after you purchased it. It takes place when the transaction happens less than two years after closing. The amount deducted from a sale is between 15% and 20%.
Go With A Cash-Based Buyer
Though most homeowners still go through real estate agents to sell their homes, more people have turned to cash-based companies. These We Buy Houses San Antonio-based organizations forego the usual fees and commissions related to home sales. Rather, companies like Sell My San Antonio House provide a cash offer for the property.
This alternative is best to use when there are issues with selling the home. For instance, property values decrease and cause your home to be worth less than its original cost. Cash-based buyers also work when you can’t put the home on the market due to needed repairs.
Directly Sell Your Home
On top of cash-based companies, homeowners directly sell their homes to ensure a minimum ROI. In other words, they avoid the real estate agent. Instead, the homeowner markets the home, conducts showings, and negotiates offers.
On one hand, this allows you to set the sales guidelines and avoid payment of additional fees. On the other hand, there’s the potential of fraud or making a bad deal with a potential buyer. In this scenario, you must research the neighborhood and the customers before you accept any deal.
Clean Your Home
Some potential buyers aren’t turned off by the price of your home. Rather, it’s the shabbiness that gets to them. Unkempt lawns, dirty siding, and powerful aromas inside the house deflect people from staying long.
Thus, some cleaning is required to ensure the minimum ROI. There’s no need to spend hundreds of dollars for professionals to brighten things up. Rent power washers, carpet cleaners, and other machines to remove dust and dirt. Trim the yard and plant some flowers to enhance curb appeal.
Perform Minor Maintenance
Refinishing the basement or adding a second floor to your home doesn’t ensure a positive ROI. In fact, if the changes drastically increase its value, potential buyers will avoid it and focus on more manageable properties. Instead of massive renovations, consider performing minor maintenance.
Again, no need to bring in professionals. For far less you have the power to paint the walls, add new handles and doorknobs, and repair minor drywall holes. Within a few days, your property could look new.
Research Neighborhood Sales Values
Utilize the internet’s powerful tools to get an idea of what other houses have gone for in your neighborhood. This data is found at MLS sites as well as city & county offices. Basically, you need to keep your price somewhere around the lowest and highest-priced homes.
If you must go higher than the top property, then look at a 10% bump. Also, be ready to negotiate with the potential buyer. You have a harder time ensuring the minimum ROI when you hold firm with the price.
In summary, what the above tips say about selling a home is don’t be greedy. If you need to ensure the minimum ROI when selling your home, then be flexible. Consider the options above and stick to the first one you select. If that doesn’t pan out, then research one of the other choices until you find an item that works well for you.