Two Ways to Sell

You have decided to sell your home and have agreed a price of $450,000 with your agent.   Your agent has a commission of 5% - based on $450,000 they will receive a commission of $22,500, leaving you with $427,500 after commission, but before costs.

You love your house however; decide that you don’t want to spend any money on preparing it for sale as you believe although a needing some work it will sell relatively quickly (within 6 weeks), plus the new owner can update the house to suit them.  

Fast forward three and half months, the market has slowed and you still have not sold.  You have reduced your asking price to $425,000.   Feedback from open homes has been that work is needed on the house compared to other homes at $425,000 – even after you have reduced the price.  You are adamant that you will not reduce your price further even though your agent is suggesting you should.

Did you know that since putting your house on the market:

• You have paid $6800 on mortgage repayments
• $1500 in outgoings
• 14 weekends interrupted by open homes
• Had increased stress because you haven’t sold
• Forgone $25,000 in your sale price, and
• Your agent has only reduced their commission by $1,000 at your current price of $425,000.  

Long Sale - Home not staged (min 3.4 months)
Asking Price	$425,000
Less
Mortgage payments	$6,800
Outgoings	$1,500
Commission	$21250
Subtotal	$29,555
Net Profit $395,450

If you don’t get an offer this month, your costs will increase and your profit will decrease, particularly if you reduce your price again.  Not a good situation.

Now consider the alternative.   You decide when listing your home for sale to get some assistance in preparing your it for sale and engage a Home Stager at a cost of $2,000[1].    The original asking price stays at $450,000 and the property sells in 6 weeks.  

Quick Sale  - Staged Home        (6 weeks)
Asking Price	$450,000
Less
Mortgage payments	$3,400
Outgoings	$750
Commission	$22,500
Staging Costs	$2,000
Subtotal	$28,650
Net Profit     $421,350

What a result, you have made an additional $25,900 in profit – reduced your stress levels and sold your home in half the time!!   

HomeStaging does make a difference.  If you would like find out more, call Décor Interior Style on 0430 195 940 and ask for Vicki.

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[1] This is an indicative price only, the actual cost will depend on the condition of the house, work required and if hire furniture is needed.