How to make a profit on your home 3

Whether you can make a profit on your home is not always in your hands, because depending on the market and when you bought and at what price you may have to sell at a loss. This is a desperate measure, however, and usually it is possible to squeeze a profit, even if it is only small. If you keep the profit margin in mind from the day you move in, you will be saved a lot of work coming up to the point of sale and much of this involves looking after your home. Especially if you are looking to sell your home quick.

Keep your home in good repair

When the time comes to sell at a profit is not the time to start doing all the little jobs that should have been done as they became necessary. Not only are buyers put off by homes that look as if they have just gone through some major building or decorating work but it will also cost a fortune to do everything at once. Although you may still manage a profit on paper, you will be so out of pocket from paying builders and decorators to do what you could probably have done yourself that in fact you will make a loss. Buyers are definitely going to be wary of any home that have been extensively renovated when they are for sale – many red flags will be flying such as ‘what else is wrong’ and ‘why are they moving when they have just had all this work done? The neighbours/schools/area must be rubbish’. Prevent this by keeping on top of jobs from day one.

Don’t be desperate

You may need a quick sale, but more than that you want a sale at the price you are asking. Don’t pressure your buyers and certainly don’t whinge. If they get the impression you are desperate to move they will do one of two things – they will either make you a ridiculously low offer or they will turn tail and you will never see them again. Either way, you don’t get your profit. Be friendly but let them look around on their own. If they ask you a question about the area, be honest, but as positive as possible. If the family next door play electro-house all night long to the accompaniment of screams and explosions, you might say that they are a very friendly and extrovert crowd.

Be prepared to wait

With a slow market at the moment, it might be best to wait for a while. If you have not had your house for long you might not be in a profit situation yet. If you bought a home in bad repair and have done a lot of work, it is possible that the asking price can justifiably be well over what you paid – a new kitchen or bathroom will significantly increase the value. House price rises are currently at the highest since 2010, so even if you have not owned your house long, you could see a profit, although it will still be modest unless you have made significant improvements.

 

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