How Do You Know If You’re Ready to Sell Your House?
Whether you’re thinking about relocating for work, down-sizing, or expanding your living space– the decision to sell your house can impact your finances significantly if you’re not well prepared. Keeping your own interests in mind, how do you know if you’re ready to make the change or if the timing is right? Here are a few very simple, but extremely important questions to ask yourself:
Does your home still fit your lifestyle?
Have your kids grown up and moved out, leaving you swimming in extra space? Are you thinking of starting a family and need more room? If you answered yes to either of these questions, perhaps it’s the right time to sell your home. Maybe your commute to work has become too long, or you live farther away from your friends and family than you’d like. Whatever the reason, if your home no longer fits your lifestyle, it may be time to look into your finances and see if a move is in the cards for you.
Is there an abundance of home-buyers in your market?
There are a handful of factors that come into play when determining the amount of buyers that could be interested in your home. It has been proven that more people look to buy homes in the spring and summer months over the fall and winter months. Sunnier weather can aid in the curb appeal of your home, which will attract more buyers.
In order to ensure that a significant amount of potential home buyers will be interested in your property, research other homes in your area that are for sale. Assess the listing prices of these homes and compare them to what yours could sell for. Depending on what you find, it may or may not be a good idea to list your home at that time.
Can you afford to move?
Between moving expenses and closing costs, you might feel your wallet taking a big hit if you’re not prepared for all the expenses involved. Upon selling your home, expect to pay commission to the real estate agents involved (which could be anywhere from 1% to 6% of the home’s sale price), moving expenses, home maintenance expenses, and more. To be sure you’re prepared for all the costs that are involved in selling your home and the events that follow, it’s advised that you set aside about 10% of the market cost of your home to pay with. Depending on the buyer’s agent, if you decide to opt out of having your own seller’s agent– you will still have to pay the the real estate agent’s commission.
Do you have enough home equity?
If the equity on your home is significant, selling your house may be a great move. In order to find out if you have equity on your home, subtract your mortgage balance with the worth of your home. Depending on the amount of equity you have, you may be able to pay off the remainder of your mortgage and various selling costs– if that’s the case, it could be a good time to sell your home. If the equity on your home isn’t high enough to warrant an immediate profit and pay off the closing costs you may have to pay out of pocket– in which case, you may not want to sell your home just yet, and maybe opt to renting out your house instead if you really need to move.
For tips on selling your home check out this article about how to sell your home quickly.