Selling a home can be a challenging experience. The process has many moving parts and sellers who aren’t prepared can quickly find themselves overwhelmed. Having a qualified real estate agent can make things easier, but some issues need to be considered before you put your home on the market. Here are three things you should consider when deciding if it’s the right time to sell your home.
Are You Emotionally Prepared to Sell?
One of the most critical issues to consider isn’t financial; it’s emotional. Selling a home involves a lot of emotions, such as the excitement of getting a good offer, the disappointment of having a deal fall through, and feelings of attachment that people have to the places they called home for many years. Home sellers need to be ready to look at the potential transaction from a purely financial perspective. If you don’t think you’re prepared to distance yourself from the emotional aspect of selling a home, then you may not be ready to sell your home. Take some time to think about the reasons why you want to sell your house and to prepare yourself for the emotions that come with putting your home on the market.
Is Equity on Your Side?
For the lion’s share of people, the goal of selling a home is to get a higher price than the seller originally paid for it. There will be situations where someone needs to sell a house quickly, even if it means a loss. But in most cases, if the home value isn’t high enough, it’s better off to wait. For example, during the housing crisis of 2008, most homeowners saw the value of their homes decline. Many even found themselves with negative equity, where they owed more on their house that it was worth at the time.
Property values tend to increase over time. Even if your home’s value is temporarily too low to justify selling it, that will change with time. Waiting for the market in the area to change to suit your needs as a seller can lead to better profits once equity is on your side. A real estate agent can help inexperience sellers understand the market and determine if now is the time to put a home up for sale.
Prepared to Move or Buy a New Home?
Another thing to keep in mind before you put your home on in the market is the current state of the market for buyers. Most home sellers will use some of the proceeds from the sale to buy a new house that better fits their lifestyle. Sellers need to ensure that the amount they will get for their current home will be sufficient to obtain a better home. If it’s not a buyer’s market, sellers may want to wait until they the price they get from selling their house is sufficient to get the home they desire. When calculating how much you need for a new mortgage, keep your monthly payment to 25 percent or less of your take-home pay on a 15-year, fixed-rate mortgage.
While waiting for the market to improve, you can use the time to make upgrades to the home that will increase curb appeal and value.
Whether you’re looking to buy or sell a home, the team at Foster Douglas Real Estate can help you get the price. Our agents are experienced navigating the competitive California land market and have the skills needed to secure good deals. Send us a message online to learn more about what Foster Douglas can do for you.