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What Determines a Home Seller’s Net Profit?
What factors determine a home seller’s bottom line? Let’s discuss.
There are certain questions I hear all the time from homeowners and soon-to-be sellers. These questions are so common, in fact, that I’ve decided to share (and answer) one of the most frequently asked with all of you today:
“What factors determine how much money a seller will net from their home?”
The first factor that will impact your net proceeds from a home sale is the amount you spend in taxes and fees during the process. Sellers are often expected to cover the buyer’s closing costs on top of handling their own expenses, so make sure to keep these figures in mind when thinking about how much you’ll walk away with after closing.
Of course, the condition of your property will also play a major role in the amount you earn from your home. Buyers are far more likely to offer up a high price for a home that’s move-in ready than they are for one that’s in need of extensive repairs. A home that looks great and is in good shape will always bring in more than one that’s in poor condition. Some buyers won’t even make an offer on a fixer-upper.
That said, the condition of the market is important, too. There are many buyers actively searching for homes in our market right now, but this isn’t always the case. Like any market, the real estate market operates by the simple laws of supply and demand. If there are more homes available than there are interested buyers, you may find it more difficult to get top dollar for your listing.
This leads us into another key factor: The amount of time your home spends on the market. In less active markets, it’s normal for a home to take a little longer to sell. However, if demand is too low (or if your property is spending much more time on the market than other homes similar to it), then your bottom line will surely suffer.
Sometimes, though, there’s nothing a seller can do to prevent this from happening. The final factor we’ll touch on today is one that sellers, unfortunately, can’t control: The economy. When economic factors render our real estate market less profitable, there is only so much you can do to compensate. This is why, whatever market you’re selling in, it’s essential that you have a professional by your side to help you make the most of it.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.
Whether you are looking for a new home, have a property to sell or have a property to rent, The Brian Ernst Team at eXp Realty can help you achieve all of your real estate goals by bringing their expe....