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Selling your home always means you’ll walk away with a big bundle of cash. But did you know that you can also save money when selling your home, potentially making that bundle even larger? The more money you make or save from selling your home, the more cash you can put toward your next house’s down payment.
Not sure where to start? Let us show you seven smart ways to save money when selling your home to maximize your profits.
1. Work with a Knowledgeable Real Estate Agent
First and foremost, you should hire a knowledgeable real estate agent. While they will take a commission fee, this will help you save money in the long run. How?
Simply put, the right real estate agent can list your home and get it on the market quickly. That way, you spend less time paying your mortgage and more time prepping to move. Furthermore, a good real estate agent will help you bargain effectively with a prospective buyer, thus making more of a profit on your home sale than you would otherwise. Selling your home quickly is easier with an agent.
2. Negotiate on Commission
You can also save money when selling your home if you negotiate hard when it comes to real estate agent commissions. You have to spend money to make money when it comes to selling your house, but that doesn’t mean you should agree to the first commission percentage the agent suggests.
Be upfront during these negotiations. Tell them, “I want to sell my home, but need to make X dollars to pay for my new house," and they'll understand where you're coming from. Remember, real estate agents want to sell your house and walk away with any commission, even if it's not what they expect.
Try to talk them down to a percentage that better suits your needs, even if it’s only by one or two points. If they feel that you will go to a competitor, they may be very willing to negotiate on commission rates even if they don’t make their normal percentage.
3. Do DIY Repairs
It’s a good idea to improve the asking price and curb appeal of your home by doing some DIY repairs. Swapping out broken light bulbs, painting the door with a fresh coat, and cleaning up your yard can go a long way toward saving money on costly repairs that a prospective buyer might request otherwise.
4. Pick Cost-Effective Upgrades
If you choose to upgrade your house to bolster its curb appeal or so you can list it for a higher price, be sure to pick cost-effective upgrades. These include things like replacing the windows, swapping out an old dishwasher with a new one, or fixing the faucets.
Some upgrades, like installing heated floors, will cost you much more than they bring in terms of higher sale profits.
5. Negotiate Closing Costs with the Buyer
You can save money when selling your home by negotiating your closing costs with the buyer. Closing costs include title taxes, government taxes, real estate commission fees, and other associated costs that both you and the buyer must pay to close the deal. Closing costs can oftentimes add up to 5% or more of the total price of the house.
In some cases, you can convince the buyer to cover some or all of your closing costs in exchange for moving out quickly or other benefits. This money-saving method is contingent on specific circumstances, of course, but it should be something to consider if you’re willing to pack up and leave quickly.
6. Pick the Right Moving Date
Speaking of leaving, choosing the right moving day can help you save money when selling your house. For example, moving on a Friday allows you to drive to your new home and move in before the start of the next workweek. Then, you don't have to take time off work or hire childcare over the weekend, both of which would normally increase the costs of moving from one house to another.
7. Offer Furniture or Appliances to Buyers
Last but not least, consider offering some appliances or furniture to homebuyers in order to sweeten the deal (or convince them to cover some of your closing costs). Good appliances, like energy-efficient dishwashers or clothes washers, can make your house much more appealing and help you secure a higher asking price for your property.
More importantly, any furniture or appliances you leave behind for the new owners of your house are things you don’t have to move with you. You can potentially rent a smaller moving van or truck if you don’t have to bring your big couch and dishwasher with you, for example.
Overall, these seven strategies can go a long way toward helping you save money when selling your house. Use them in conjunction with each other and you’ll save much more money than you imagined, plus be able to buy a bigger, better house than you initially thought!