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Cash Saving Tips When Selling Your Home

Tip #1:  Reduce Listing Commission

Without question, when selling a house, the listing commission is the largest source of SAVINGS for any home seller.  Even though real estate commissions are negotiable by law, many agents are reluctant to reduce their fee often creating an uncomfortable feeling or environment for the Seller when asking for a reduction.  At Bay Select Realty we provide FULL SERVICE and reduced commission (without haggling), enabling Sellers to net more money at close of escrow.

Tip #2: Carefully Examining Fees During Negotiations

When you receive an offer, during negotiations, negotiate fees in the form of a counter offer.  If you feel comfortable, do not always accept a home warranty cost.  In many cases, it is also customary for both buyer and seller to split the escrow fee 50/50 between buyer and seller.  Depending upon the demand for your house (how many offers are being presented) and the purchase price that is being offered, other fees can and should be considered to be shared or paid by the buyer.  This would include such fees as the seller’s title insurance and/or transfer tax.

Tip #3: Lower Repair Costs Called Out In Reports

Perhaps you have had a termite pest report that has called out for some dry rot and other items for repair. The cost of the work is several thousand dollars and it has been negotiated to be at seller’s expense.  From my past experience I can generally say that many pest control estimates are somewhat inflated in price.  In many cases if the work that has been designated by report from the termite inspection is “put out to bid” to a licensed contractor the seller can save up 30% on every dollar of the original estimate.   Depending upon the size and scope of the estimate, this could provide a significant savings to the seller.  Once the work is completed the terminate inspection company that provided the report will come out for a re-inspection for a nominal fee to provide a “clearance”.

Tip #4: Provide Incentive for Tenant to Cooperate In Sale

Perhaps you have a rental property that is currently occupied.  In this scenario you have a lease with the tenant that has several months before expiring and the house needs to be sold with tenant occupying the property.  It is important to note that a high level of cooperation is required from the tenant in order to produce maximum purchase price for two major reasons:

1. Access (there is a direct correlation between ease of showing property and a higher purchase price).  As a general rule, the more Buyers that see a property equals higher purchase price.
2. Presentation of house (will the house look neat and tidy when shown) I believe this speaks for itself on way it helps produce a higher purchase price.

Let’s face it; t the tenant that occupies your rental typically has no incentive to help sell your house!  Why should they?  Yet it is important to have a spirit of cooperation in order to maximize your sales price and therefore maximize your NET proceeds at close. Solution: Provide some sort of compensation or incentive to tenant:

1. Show the Property
2. Keep the house looking good during showings

This compensation could be in the form of a couple hundred dollars rent and/or a small percent of the sales price of the house for an additional incentive.  In this situation everybody wins when the sale is complete.  The monies you spend on the incentive will be well offset by the increase sales price you will produce