If you’ve inherited a property and you’re planning to sell it, make sure you read this blog post for 3 tips about how to price your inherited home in New York for sale…
Did you inherit a property in New York that you’re now thinking about selling? While an inherited property can be a wonderful gift from a loved one who has passed on, it can also be a costly burden. So selling it makes sense and allows you to use the gifted equity for some other purpose. But selling an inherited property may not come easily to you, especially if you haven’t aren’t experienced in the process.
Each region of the country has different processes and timelines for home sales. In New York, it can take months for a Buyer’s mortgage to process, not to mention all the other steps to the arrive at the closing table and finally collect your check.
We know how this can add stress in an already stressful time, so we put together a list of five of the most effective steps you can take to sell your inherited home in New York quickly.
Tip #1: Price Competitively To Sell Quickly
When it comes to pricing an inherited property, many factors come into play. One crucial consideration is the desired speed of the sale. Opting for an agent to sell “on the market” may take months, requiring ongoing expenses for maintenance. This approach can be expensive and impact the overall profitability of the transaction.
Inexperienced Sellers might price their inherited house at the top of the price scale, believing that a higher sales price will net them the highest profits. And sometimes, it can work out that way in the most competitive Buyers markets . But what most often happens is that the higher priced homes have fewer Buyers that can afford them.
The higher a home is priced the more the Buyers will expect any and all repairs or updates to be made. Also, the higher the sales price, the more money a Seller pays for agent commissions. For instance, a $400,000 sales price costs the Seller an average of $16,000 in agent commissions. Add that to the months of carrying the house- especially in cold New York winters, plus school and property taxes, and many property owners quickly learn it can be better to price slightly lower for a faster sale and potential bidding wars.
Tip #2: Avoid Pricing Based On Fond Memories Or Emotion
One of the significant hurdles for property owners inherited property is the emotional ties to the property. The challenge lies in separating that sentimental attachment from the actual value. While the market may dictate a certain price, emotions and fond memories of growing up or happy times in the house may inadvertently influence the decision to increase the asking price. This is a common occurrence in the real estate market.
A better approach would be to work with a real estate investor or other professional. Their knowledge of real estate and the local market will help you understand why the number you have in mind may or may not be the best price to list your inherited property for sale. Their unbiased expertise will be instrumental in helping you determine the best price to offer the house for sale.
If you inherited the property from a loved one who had lived in the property for many years then you might find out that the property needs some repairs. You could choose to do this work yourself and then ask for a higher price but why do that when you could save yourself the time and effort (and what you’d have to pay for equipment, supplies, or a contractor) and instead just ask for less and give a “repair discount”. That way you avoid the hassle of the work, and you still come out the same financially.
Tip #3: Build In Discounts For Repairs
Incorporating the cost of repairs into the initial listing price of a house is crucial for several reasons. Firstly, it sets realistic expectations for potential buyers, fostering trust and transparency in the transaction. A property with known repair needs but an upfront pricing strategy is more likely to attract serious and informed buyers, reducing the likelihood of negotiations falling apart due to unexpected repair costs. Additionally, it streamlines the sales process, expediting the closing timeline. Lastly, a fair and accurately priced home can fetch a competitive market value, ensuring a mutually beneficial outcome for both the seller and the buyer, ultimately enhancing the efficiency and success of the real estate transaction.
An inherited house can be a lot of work so if you’re thinking of selling it, you’re certainly not alone. But how do you price an inherited house? These tips will guide you on how to price your inherited home in New York for sale.
Why not bypass all the work and cost of selling through an agent and instead get in touch with us today about selling your inherited property to us here at Sell Now Homebuyers? Just call us at 914-559-2579 or click here and enter your information in the form.