How can you increase the value of your Salt Lake City home and fetch a higher selling price? The obvious answer is to make upgrades. This will work, of course, if you can get a return on your investment.
For example, if similar Provo homes sell for $15,000 more with an up-to-the-minute kitchen, you might consider renovating your kitchen if you can do if for significantly less than $15,000.
The not-so-obvious way to increase the value of your Salt Lake City home is to make it easier to buy. If a buyer is considering two similarly-priced properties but cannot qualify for a mortgage, a lease-option could clinch the deal. If the option is structured wisely, the seller turns a profit whether or not the buyer decides to purchase at the end of the lease (usually two years).
Seller financing is another way to increase your St. George home’s value. Deciding to become the bank for your buyer is a serious decision. Some of the advantages to seller financing are as follows:
- May defer capital gains tax liability.
- Collecting mortgage payments is far easier than collecting rent from Provo investment properties
- If the buyer defaults, you get the property back, no matter how long they have been paying the mortgage.
- The interest rate may be higher than what you would have earned if you had sold conventionally and invested the lump sum.
Many of my Provo real estate clients have profited from seller financing. If you would like to learn about other ways to increase the value of your Anytown home listing, give me a call at 801.938.3466. I am Chris Johnson of Real Estate Marketing Agency.