Archive for April, 2010

Are you SAVING money or MAKING money when selling your house?

Thursday, April 1st, 2010

The biggest mistake is SAVING money on professional services and materials when it comes to prepare your house for sale.

You do want TO MAKE MONEY! You can not make money without investing. You invest in to the college education to get a better job. You invest into good suit when going to the interview to get a job. Why do you think that when you are selling your house you will automatically make money?    NO, you will not unless you invest time and money. More you invest the better return you will get. I am not talking about over improving your house. Be careful with that! But don’t pass unfinished projects on the buyer you will lose them right away on that issue! Instead make necessary repairs, invest in curb appeal, professional cleaning, rent storage to put your clutter away, hire a professional stagier, invest in new updated light fixtures, hardware, bedding, accessories and paint, and at the end hire a good agent who charges full 3% sellers commission. Remember advertising cost money and you will get what you paid for. Don’t overprice your house thinking it is outstanding. If buyers see that price is too high they walk away to the next house on their list without any proposal. Only a few people will negotiate.

Sounds like a lot of effort especially if it is not going to be your house soon? But think how you are going to feel about your house when it’s all done. HAPPY! With the exact same feeling your buyer will put an offer on your house. Isn’t that what you want?

Now we come to the SAVE part.

By doing all the above you will SAVE on time on the market and you will SAVE on your mortgage, taxes and utilities accordingly, and you will SAVE on price reductions.

For example for average $250K home mortgage, taxes, insurance and utilities are around $2500 per month. If you decide to “save money” at the beginning and will not do anything to prepare you house for sale it will stay on the market at least for 6 month. If you did your homework and priced it right you could save at least 4 month on the market which is $10K. Plus during 6 month you would reduce your asking price at least $10K. Now we are talking about $20K in SAVINGS. All the professional services and materials could cost you couple of thousand dollars that will become your best short term investment.

So the main idea is to SAVE but not in the beginning of all that process. SAVINGS will come automatically and you will be surprised that you have not only SAVED but MADE money on your house.

For more info on Staging, please visit out website www.addvaluehomestaging.com