You like your home. You enjoy your neighborhood. Lately, you’ve had these thoughts too often, of how it would be if you could downsize or maybe your family is outgrowing every room in the home. There are a number of reasons why you may be debating on when to sell your home but determining when to sell should be based on the following factors.
1.) Can you afford the costs?
Sure you’re selling your home in hopes to gain a large lump sum of cash at closing but there are other expenses that you may have to pay upfront and some that will reduce your proceeds. Some of these costs include:
- Improvements or upgrades – a complete renovation isn’t necessary but a few touch-ups will help attract the right buyer
- Pre-inspection and repairs – knowing and resolving any structural or functional issues upfront will help prepare you for buyer negotiations
- Closing costs – deed fees, HOA fees, and taxes are a few of the closing costs a seller must pay out of the proceeds
- Broker fees – costs to listing broker to be split between buyers agent and sellers agent is another fee you will pay out of the proceeds
First, determine if you are interested in selling the home as-is (without improvements or repairs), then determine if you can afford the costs associated with selling your home.
2.) Do you know your property value?
Knowing your property value can help you determine how much equity you have in your property. Ultimately your equity, after all liens are paid and costs are deducted, is the amount you will receive for proceeds. You can find your property value by having an appraisal completed or by contacting a knowledgeable real estate agent. Now that you know your properties value, is it lucrative enough for you to proceed with a sale?
3.) Check your competition?
You can ignore the other homes currently for sale all you want, but if you want to sell your house it’s best to see how other people are doing it. Take a weekend to enjoy open houses and new developments. Also request a market analysis from your local real estate agent. Not only will this show you what you are up against but it will help you determine what price to list at. Now that you’ve checked out some competition are you clear on how your house will present to buyers?
4.) What is your next move?
Selling your home is just the first part of the process. Do not become the seller who has finally found a buyer for their home but haven’t found a new home to move into yet. Determine ahead of time the neighborhoods you’d like to move to and get pre-qualified for a new loan. Make sure your loan officer knows whether or not you plan to use the sale proceeds for the purchase of a new home. If you do not live in the house you plan to sale, make sure you are financially prepared to invest or save your sales proceeds. A great tax deferred option is the 1031-exchange for anyone who does or does not live in the home they plan to sell. All ready for your next steps?
Determining when the right time to sell your home may be the most daunting tasks but it should never go undone. The next step in the process is listing your home for sale. With a knowledgeable realtor, this should be the least stressful part of the process. If you are interested in a free listing marketing plan contact me via email firstname.lastname@example.org. This marketing plan will show you my exact steps for getting your home from for sale to SOLD.