Are you thinking of selling your home? It can be a complicated, timely and costly process, so it is important to ensure it is the right decision for you. There are a range of factors that you should consider before selling your homes, such as your finances, your future goals, the cost of selling, the equity in the home, the housing market, and much more.
To help you make your decision with confidence, here are some of the top things you should consider if you are thinking about selling your home.
What is your home worth?
A basic understanding of the housing market is important before selling your home. This will ensure that you are going to benefit financially from selling your home, and not cost you more money. You want to determine how much your home is worth at the time of selling, and how much equity you will gain. No two homes are the same, so it will be difficult to compare your home with those on the market. Instead, there are plenty of reliable tools and resources online that you can take advantage of to answer the common question: what is my home’s fair market value?
How much will it cost you to sell your home?
It is easy to only consider the equity you will receive after selling your home. This will contribute to your ability to pay off your mortgage, and cover the costs of selling and moving. To build enough equity to cover these costs, you will need to be in the home for at least five years before selling.
Unfortunately, there are other costs in the process that you need to consider because if you’re not careful, you could end up losing money. Make sure you understand the fees the estate agents are charging you for listing and managing the sale of your property, as this usually comes as a percentage, between 5-10%. You may also need to pay for repairs, moving fees, legal fees, and more. If you are buying a new house at the same time, you will need to consider the additional legal fees charged by your attorney, surveys and taxes.
Do you have time?
Selling a home can be time-consuming. The process itself can take months or even years. During this time, you will need to make your home attractive to buyers, facilitate house viewings, deal with the estate agent and buyer queries, contracts, negotiations, other individuals in the chain, and much more. If you have things going on in your life, such as starting a new job, starting a family or going traveling, you will need to consider the time of selling your home, as well as the unpredictability that comes with it. If you are set on selling your home, you should not plan anything big, important or costly, until the sale is final.
Selling your home is a huge undertaking, which is why it is important you fully understand the process. Make sure you consider how much your home is worth, what costs are involved, and how much time the selling process could take.