How You Can Save Money on Your Home Sale [Real Estate Insider]

By spending around $500 up-front, you can save thousands of dollars on your home sale and have the luxury of a quick and comfortable ride to closing day

Does this seem like an investment that you're interested in? Here are some key factors that can determine how quickly your home gets sold and how much money you can save during negotiations:

  • Agents agree to lower commission rates.
  • Buyers love that your home is free of major issues.
  • You can save money on expensive repairs or "closing credits."
  • You have proof that your home is listed at a reasonable price.

Putting in the work before listing your home is an industry secret that saves agents the time and resources it takes to get a house ready to sell. By going through a Pre-Listing program, your home will be free of any significant issues that the buyer may find, which puts you in a great position to attract serious buyers who are searching for a move-in ready house. In return, the seller saves valuable time and some serious cash on the sale as a reward for the hard work they put in before listing their home. Take a look at some of the ways sellers are saving money by utilizing HomeTraq's Pre-Listing services: 

Agents Agree to Lower Commission Rates

Realtors who are partnered with HomeTraq have agreed to a 4% commission rate on houses where sellers have participated in the pre-listing program to some extent. A typical commission is around 6-8% for a home sale, and it typically comes out of the seller's pocket. Keep in mind, the seller and buyer's agents both get a cut of the commission. Thus, the seller pays a commission for the buyer's agent as well, which they agree upon in the contract with their selling agent. In other words, you pay for an agent that doesn't even represent you. It's in your best benefit to get a lower commission and keep more money in your pocket. 

Suppose you're using an agent outside of the HomeTraq network. In that case, you can still utilize our pre-listing model and request a reduced commission rate. Most agents appreciate the fact that you are making their life more comfortable. By consulting professionals about selling your home before agreeing on the contract, you are putting in the work for them. Your home will be in excellent condition to sell before they step into the picture, and they just have to find the buyer. We can negotiate a reduced commission, so more cash from the sale goes into your pocket.

Buyers Love That Your Home is Free of Issues

Gaining insight into the problems gives you the power to fix them before the buyer is even aware of the issue. If buyers see your home as "complete" and the house is more attractive, they may be willing to offer more money for a well-prepared home. 

An issue-free home comes from having an inspection done before you allow buyers to tour the home. Getting an inspection before the sale might seem like a waste of money because the buyer's lender will also have an inspection done by someone in their network to ensure the home doesn't have any major defects. However, getting ahead of these problems could save you a ton of money in the long run. 

Move-in ready homes are the most popular listings on the market. Most buyers aren't looking for a home to fix up and turn around for profit. Therefore, having a home with few issues is the best way to ensure you get substantial interest in your home. More interest leads to more tours, and more tours mean a higher chance for an offer. 

You Can Save Money on Expensive Repairs and "Closing Credits" 

You can preemptively fix the issues however it works best for you. Once the buyer becomes aware of any problems, they can negotiate closing credit with stipulations like requesting a specific contractor or other specifications. 

As the owner, you want to be in the driver's seat. Once you offer your home for sale, the buyers are interested in how the problems get fixed. If you do them before listing your home, you have complete control over how much you spend on the repairs. For example, if the buyer finds out about an issue from their inspection, they can request a $3,000 credit to fix it. In reality, it may only cost $50 to hire someone to come fix it. You run the risk of scaring away the buyer if you come back with a low counter-offer. Having a pre-inspection dramatically reduces the likelihood of this happening. 

You Have Proof That Your Home is Listed at a Reasonable Price

One great way to get a quick estimate for the value f your home is to use an automated valuation model (AVM). Many mortgage companies use AVMs so they can confirm pre-approvals for buyers. However, sellers can utilize the same software to determine how much they should list their home for.

Not all AVMs are created equal, so they aren't seen as an official "appraisal." They still consider several factors that the appraiser will evaluate, such as square footage and the number of bedrooms and bathrooms. Some will go more in-depth and utilize other properties in your area for comparison and even ask for tax records on the home.

Tax records are another key component of the pre-listing program. Ensuring that your tax records are accurate and up-to-date is a key step to estimating the real value of your home. If anything on the record is inaccurate, you could get an incorrect valuation. While AVMs are fast, they are not as meticulous as a full appraisal. Appraisals can take weeks to complete, but they are as official as it gets. If you want to be sure about your home's value, you should get your property appraised. In this case, you will have the most powerful negotiating tool. If the offer is below the appraised value, you would have an easy case for your counter-offer already on-hand. 


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