“When their homes hit the market, most sellers are so preoccupied with how much they hope to earn; they forget selling a home costs money, too — and quite a lot.”
Seale shared that high home-selling costs including commission eating away at profits, the earnings are much slimmer than a few years ago. As such, she noted that 34% of Black sellers said they would have waited to sell until home prices rose.
“Despite a less favorable market, we found that sellers still think they could have made a hefty profit if only they had taken a few cost-cutting measures,” she said.
She stressed most expenses, including price reductions and making repairs, are tied to selling a home and are lower for Black Americans than for overall respondents. For instance, “The typical value of U.S. homes with Black owners is 18% less than the typical value of homes with White owners,” according to this report.
Cutting home-selling expenses can depend on a seller’s priorities and the tradeoffs they are willing to endure. Seale says seekers who prioritize selling quickly may want to invest in repairs that will make their home more attractive and bring in more buyers, but they don’t have to spend money on repairs if they would rather save money and aren’t in a hurry to sell their home.
Though they could boost home-selling expenses, Seale offered five ways homeowners may do well to consider to sell faster:
Stage your home to highlight its best features and help buyers imagine themselves living there.
Hire a professional photographer. “Because most buyers start their home search online, photos that show your home with the best light and angles will make a good first impression,” Seale advises.
Work with an experienced real estate agent to set a competitive price. Overpricing can deter buyers and extend the sale process, while underpricing may lead to lost potential earnings.
“Offer buyer concessions, such as paying some of their closing costs. This will widen the pool of buyers, especially those struggling with housing affordability,” Seale notes.
If you don’t want to buyers to make concessions, iBuyer or We Buy Houses companies make fast offers; however most pay well below market value for homes.
Seale says sellers may be willing to accept the extra expense depending on their circumstances, including if they need to sell quickly or relocate for a job, for example.
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Source: Black Enterprise