Turn a Profit When Selling A Home
It is a hard truth, but selling a home costs money. Still, there are ways to save cash throughout the process and increase one’s chances of turning a profit on the home. Remember that while sellers can pursue many cost cutting methods, they should not be stingy when hiring a real estate agent. An experienced South Florida real estate agent will get sellers the most for their homes and advise them on what they can do to turn a profit.
Price Home Right
One of the most important steps towards turning a profit when selling a home is pricing the home correctly. Sellers should be realistic with the price because one that is too high will drive away potential buyers. The longer a home sits on the market, the less valuable it will become. It will be worth less to prospective buyers, therefore it might have to experience multiple reductions. By pricing right from the beginning, the home will attract the most buyers which will likely lead to more offers for higher amounts.
Hire A Real Estate Agent
Though it may seem beneficial to save as much money as possible by hiring the least expensive real estate agent or even forgoing an agent entirely by taking the FSBO route, it may actually hurt your profit-making chances. An experienced South Florida real estate agent will give sellers access to more potential buyers, especially since 88% of buyers use an agent when purchasing their home. Homeowners who opt to do it by themselves are less able to expose their property to as many interested buyers. An agent with an aggressive marketing plan and a strong track record can help sell your home quickly and for the best price. Clearly, an agent is worth the extra cost.
Understand Capital Gains
Obviously, achieving a gain on an investment is an accomplishment in and of itself, but this is especially true for home sales. A profit resulting from an investment or the sale of a property is called a capital gain. The Internal Revenue Service expects all capital gains to be reported on tax returns with the exception of profits earned when selling a primary home. The only capital gains which have to be reported are those that total more than $250,000 by a single home seller or more than $500,000 by a married seller. Otherwise, home sellers do not have to pay capital gains taxes on their profits.
Sell Furniture And Unwanted items
To ensure moving costs do not eat up at most of the capital gains, homeowners should consider selling their furniture and unwanted items before closing the deal. Moving furniture, especially if a moving company is hired, can potentially be more expensive than buying new furniture. Things to consider buying or donating in order to cut moving costs are oversized furniture, small kitchen appliances, and glassware. Homeowners can either set up a garage sale, sell online, visit a consignment store, or donate unwanted or problematic furniture and other items.
If you are planning to sell your home or are in the market to buy a new one, call the real estate professionals at Stein Posner today. Our experts will guide you in successfully selling or buying a home in South Florida.