Are you thinking about selling your home? This is not a small step so it is normal to feel nervous. Here are 5 questions that will help you determine whether it is the right move for you and your family.
Are you emotionally ready to let go?
Your home is a very special place because you probably have put in a lot of effort to make it your own. Regardless of your reason for moving, this space will always hold memories of your life there. It can be difficult to detach yourself emotionally as this special item of yours is scrutinized and critiqued by potential buyers who view it as a simple product.
Do I need to make any repairs?
Your home is probably your biggest investment so you have certainly taken good care of it. However, it is important to take a look at any pending and upcoming maintenance on the house. Do you need to change your roof? Is there any major servicing required for your HVAC system? This is important because a home inspection is a necessary step in the selling process. Performing it before you list is often a good idea, because it will prevent delays if any surprises come up during the closing process and it will give you a chance to take an action that may increase the value of your home.
Does it make sense financially?
There are a lot of factors at play here. What is the value of your home? Are you aware of the costs associated with selling a property including the real estate agent’s commission, any necessary repairs and staging costs? Now this can be a little daunting but it does not have to be. There are many free resources online to help you estimate the value of your home. This will give you a rough estimate to work with until you go through a formal appraisal. Consider that any real estate agent will earn a commission for listing a property that will probably be no less than 6% of the value of the sale. Also, you must account for the cost of any repairs that may increase the value of your home and/or to appeal to buyers. For example, there might be some light fixtures that require an update or a wall that might be a little too bright. Once you have estimated your cost, you can subtract the costs from the estimated value to determine your net proceeds. Based on this information, you can determine whether it is a good idea to maybe take some time to tackle any important issues so you can walk out with higher proceeds.
Is it the right time?
The real estate market can be volatile. There are certain times of the year where it might be better for you to list your home than others. It is said that spring is in general terms a better time than winter for example. However, the area where your home is can be a very important factor. Lean on the expertise of your real estate agent for guidance but there are a few things you can do to get an idea. You do an inventory analysis which means going online and look at how fast and for how much similar houses are selling. It will also help you to check for how many are available for sale right now to get a sense of your competition if you were to list your home.
Am I aware of the process and prepared for the timeline it entails?
Selling a home is a slow and lengthy process. There are a lot of things that take place before and after listing, and even more so to get to closing. According to the NAR (National Association of Realtors), an average property sits on the market for 26 days before going under contract. There may be an additional 46 days for a buyer to close on a purchase loan. Accounting for inspection, appraisal and any unforeseen delays, the whole process can take two to three months.
Sure, there is a lot to think about and many things to consider but take it one step at a time. You can do this! Do not worry if at the end of this list you decide not to sell your home at this time. You certainly don’t have to. We are happy to help you make the right choice whether you decide to sell or not.