To determine if you should sell your home, consider life circumstances, but also your financial situation like the amount of equity you have in your home, your ability to afford a new home, and all of the costs of selling. You’ll also want to understand the local housing market and how seasonal trends can impact your goals. Asking yourself if you’re ready to sell is an important question to answer since selling at the wrong time can cause trouble for years to come. The following will walk you through the things that you need to consider before you sell…
Do You Have Enough Equity In Your Home
Selling your home is not just based on the market conditions it is also dependent on your personal situation. Equity is the main factor in knowing if you are financially ready to sell your home. Sell your home when you have negative equity is a bad deal. breaking even is better but not ideal. In this situation do not sell unless you must in order to avoid bankruptcy or foreclosure. To find your actual equity is important. Ask and experienced real estate agents to run a free comparative market analysis for the best estimate. And check your latest mortgage statement. Once you have those two numbers simply subtract your current mortgage from your home’s estimated market value and you have your equity. To buy a new home make sure your equity is enough to pay off your current mortgage and to have a 20% down payment on your next home. The home sale should also cover your closing cost and moving expenses. If you can put more than 20% down payment that is even better and will save you thousands of dollars over the years.
It’s Nice To Be Out of Debt With Cash in the Bank
Be a money-smart home buyer. Start by taking a hard look at your finances. It is a really good sign if all your non-mortgage debt is paid and you have three to six months of expenses in your emergency fund. That is a good sign you are financially secure to purchase a new home.
The New Home Will Fit Your Lifestyle and Budget Better
It is recommended to keep your monthly payment to 25% or less of your take-home pay on a 15-year fixed-rate mortgage. So if your life has changed for instance you now have children and need another bedroom for your growing family or maybe the children are now grown and you want a smaller home. Downsizing is great especially if you sell a large home and pay cash for a smaller home and invest the rest for your retirement.
You Can Afford the Move With Your Normal Cash Flow
The less-obvious costs of moving tends to take homeowners by surprise. Before you start unrolling the packing tape, there are several costs of moving to consider. Moving supplies are one of the most basic costs such as boxes, packing tape, packing peanuts, moving blankets, and packing paper. Professional house cleaning whether you’re moving in or out, a deep clean is a must. Movers unless you have friends or family you can enlist, chances are you’ll need to hire some help for the move. To sell your home you should invest a little to stage your home, paint, and elbow grease can go a long way into making a great impression and getting your home sold fast. When you selling a home and moving to a new place, you’ll inevitably encounter new expenses. Leave some wiggle room in your budget to help offset some of the unexpected costs of moving as well as those you can anticipate well in advance.
You Are Emotionally Ready to Sell
Before you hire the real estate agent and put the For Sale Sign in the front yard take a few minutes to answer a few questions to make sure you are not only financially ready but are emotionally ready to sell your home…
- Are you ready to leave the place where your family has made memories?
- Are you ready to put in the hard work to get your home ready for house hunters?
- Are you ready to keep the house in tip-top shape for as long as it takes to sell it?
- Are you ready for all the negotiation over what buyers are willing to pay and what you feel is a fair price?.
- Are you ready to hear all the negative comments buyers will say about your home?
Not trying to talk you out of selling just want you to be ready when you do decide to move on to the next stage of your life.
You Understand the Current Real Estate Market
Remember the law of supply and demand? When supply is down and demand goes up, prices tend to go up also. Is this the right time to be selling?
You Have a Real Estate Agent
Partner with a pro you can trust to provide honest advice so you can do what is best for you and your budget. A good agent puts service before sales but knows how to get things done when its time to sell. A real estate agent helps his or her clients purchase, rent, or sell properties. They advise clients about market conditions, conduct walk-throughs, and provide guidance and assistance through the process of buying, selling, or leasing properties. They handle all the required paperwork. They advise you as you negotiate offers and market your home so it receives as much exposure to potential buyers as possible. Your home is one of the biggest financial investments in your lifetime. Work with a top performing agent who knows your market. An experienced real estate agent can help you navigate the search for your next home too.
Tom has 20+ years experience in helping his clients buy and sell properties. Tom is also great resource for trusted vendors that can help assess and fix a property before buying or selling it.
About Tom Reese
Helping my clients attain their dreams has been the foundation of my success. With my strong attention to customer service, I have earned my clients continued support and referrals. Put my enthusiasm and dedication to work for you!
Call Tom anytime at
Tom may be new to rapping but he’s not new to real estate!