There are many things to consider when selling your house, especially if you decide to do so without a realtor.
The easy way to sell your house is to visit a real estate agency and offer it and have them do all the work, but you could save a lot of money by selling your house by yourself. This does not have to be very difficult to do but doesn’t necessarily mean it will be the cheapest way to sell a house in the long run.
Research the Rhode Island Real Estate Market
The first thing you need to do to get started is to research the Rhode Island real estate market. Check out other Rhode Island properties selling in your area, visit them as a potential buyer and check out what the real estate agents say and do when showing the properties.
Take notes and apply those techniques to your property. It’s always a good idea to learn the average house price, as well as real estate values before listing a property.
After all, you have lived in the house or apartment and know all the good and bad things about it. Learn by copying the agents and show off all the good points in your property and downplay the not-so-good things, but don’t omit anything if asked.
They could sue you for not disclosing negative information to a buyer. In the end, the profit you would make could end up being a court settlement with a disgruntled new owner. You don’t want that to happen, so check out how the competition is doing the property showing and learn from them.
Try to find out what the buyers are looking for and see how your property stacks up with those features. For example, if they are looking for a sea view and you don’t have one, sell them on the fact that the property does not need lots of upkeep that beach property has. Sell them onto the good things about your real estate asset.
Everything has a good side and a bad one; you are the best person to be able to show off the good parts of your home and the not-so-good ones and how you have dealt with those aspects with the future residents.
Check out prices in your area. Sure, you want to make a profit, but at the same time, you need to be realistic, study the market and see how much you can ask for without being unreasonable.
You also need to get used to the actual value of the property, which you may not have noticed going down or climbing up during the time you have lived in it, or maybe you inherited your property and didn’t know the actual price of it.
Know Your House Selling Fees in RI
Part of understanding how to price a home to list is understanding what the closing costs are. These are the fees and taxes due at the time the property sells.
Some of the costs are often covered by the buyer; however, most of the seller covers most of them. In some instances, a seller may cover all of the closing costs during the negotiation of the sale to lock in the buyer. There are also attorney’s fees, which typically range between $800 and $1,100, deed transfer taxes, and courier fees.
Typically, closing costs are around 10% of the selling price to cover all expenses associated with the sale. Of that amount, approximately 3-6% of that is only for the closing costs. Understanding the fee structure and how to divide it before presenting the property for sale will save time and prevent surprises.
Have You Calculated for Repairs & Renovations
There may be a need to make repairs or renovations before a potential sale. You need to calculate the after renovation value (ARV) before beginning the changes to ensure you recuperate the money spent in the selling price. Selling a house that needs repairs is tricky, but can also offer value if the price is right.
The ARV can be difficult for the average homeowner to gauge when renovating a home. Typically, it’s impossible to receive a 100% ROI (return on investment) from the majority of planned renovation projects. In other words, the future value of the home is often slightly less than the market value plus the value of the renovations.
The buyer may request information regarding potential repairs and renovations prior to entering into negotiations. If this is the case, he or she will likely make a counteroffer in which you’ll pay the expense of the required repairs or maintenance and discounted from the price of the house or the apartment.
This should not surprise you. If it were the other way around, you would be asking the seller of your future house to cover any major imperfections or damages on the property. If you have kept it up to date and in good condition, this should not be an issue.
Cheapest Ways to Sell a House in RI
There are ways to reduce the expenses associated with selling a home in Rhode Island that can save thousands of dollars. The most obvious choice is to price it to sell. This could lead to a fast turnaround, which means less investment in advertising, less use of the property that occurs while waiting for a buyer, and less spending of money on repairs and renovations.
It’s also possible, in some circumstances, to negotiate a better deal with a real estate agent, so you have to reduce his or her fees. This is particularly true in cases where an agent represents the seller and the buyer.
In addition, making some of the minor repairs or upgrades yourself can save you money. Be mindful of what requires a permit and what doesn’t before getting started.
Another thing you can do is hire a professional property photographer to take pictures of your home, making it look like a dream home for anyone, this will cost you around $500, but it is well worth it. You can relax knowing that all the good points of the house have photos to your advantage, which can also lead to a quick sale.
Timing the sale properly will make a big difference. In Rhode Island, people tend to venture out more when spring comes around, so homes more often sell quickly in the spring and summer months than they do in the winter.
Tips for Lowering Costs When Selling a House
It may seem counterintuitive, but hiring a professional and experienced realtor can save money in the long run. These know how to work the market and attract clients, which will allow the home to sell quickly. In addition, more experienced realtors are often willing to negotiate the closing costs more.
Don’t make too many improvements ahead of listing the property. Consider the ARV and make sure that any repairs or upgrades are absolutely essential to ensure a home sale. Most homebuyers expect to make some changes when entering a new property.
Cutting Down Non-Essential Costs
When selling a home, it’s important not to get carried away with expenses. Explore every aspect of the sale prior to starting, and list the financial commitment involved. Then, dissect each component to figure out what areas to reduce or eliminate – buying those designer throw pillows that were 400% more expensive than the others probably won’t help the home sell any quicker.
Do You Need a Realtor
A very important part of selling your property is to abide by the legislation that governs Rhode Island property sales. You don’t want a fine – much less a lawsuit – later because of something you did not do.
Make sure you know what the law requires you to disclose, such as using materials that are not allowed, like lead paint or plumbing and electrical wiring that are not code built in the property either by yourself or bought that way when you acquired the property. The willful omission of this information goes against the law.
Other typical details of this type are add-ons to the property, for example, a garden shed or extra footage in the garden.
This is where a realtor’s expertise helps, and why they get paid the fees they do. It’s possible to sell a home without a realtor, but one false step could cost significantly more than the agent’s fees.
Could You Sell to a Cash Home Buyer
When speed, convenience, and a fast sale are priorities, finding cash home buyers in Lincoln and surrounding areas can be the best choice. Typically, selling a house can take an average of 51 days. However, cash deals are often completed within just 10. The amount of paperwork is less and there’s no need to wait for the buyer to secure financing. In addition, selling a house as is becomes quick and easy without the need for costly repairs.
There are a lot of variables to consider when looking for someone to buy your house in Providence or other parts of Rhode Island, not the least of which is whether to do it alone or use a realtor. Both have their advantages and disadvantages, and Ocean City Development can help clear the air. We buy homes in Rhode Island and can offer you a fair price and quick turnover time so you can move on to the next chapter of your life.