When putting a home up for sale, it makes sense to take a tip from the professionals. In this case, the “professionals” referred to are successful investors. They know that a buyer is not likely to be interested in inheriting a host of defects. Professional investors have perfected the fix and flip process.
Making the home sell as fast as possible at the highest possible price is a matter of preparation. Defects and deferred maintenance that buyers can see during the initial visit will lower the price they are willing to bid. After the buyer gets the results from the home inspection, they enter a new phase of regret and often overreact by canceling the purchase contract or asking for a huge list of repairs. These events work against you in trying to get top dollar.
So what do the professionals do first? They focus on dressing the house up with some key improvements that a competent Realtor can advise on. The Realtor is being paid, in part, for advisory services; don’t ignore what the Realtor is telling you when they suggest some cosmetic improvements. This makes a difference in the price buyers are willing to pay.
What do professionals do next? They hire experts to advise them on the major systems and they fix problems before the buyer sends in the home inspector. As a seller, it is wise to hire a home inspector to do a Pre-Listing Inspection. It allows you to prioritize the repair needs and, when any issues are fixed, show the buyer that needed repairs on systems have been made. This will give the buyer encouragement and help them avoid the feelings of regret due to “buyer’s remorse.” This makes a difference in both the price buyers are willing to pay and by reducing the time it takes to close escrow.
Successful investors know that spending $2,500 up front so that you can make an extra $10,000 with a faster close is a really good deal.
Let’s summarize on how to copy what the professionals are doing:
- Have your Realtor help with giving ideas on making the home look sparkly.
- Hire a home inspector for a Pre-Listing Inspection to identify any needed repairs.
- Make the improvements.
- Enjoy the extra money upon closing.