While purchasing a home can be one of the biggest decisions that you will ever make, selling a home can be an equally important decision. Since it can end up being such an enormous financial decision, there are several factors that you should consider before you decide if you are ready to sell your home.
The first factor to consider when determining if you are ready to sell your home is if you can afford to do so. Although the housing market has been hot in the last few years, many people have gone into personal debt amounting to thousands of dollars: "good" debt such as education are a big factor, but there has also been an increase in "bad" debit, namely unnecessary credit card expenses. To pay off these debts people may have taken a second mortgage out. For some this might mean that they actually owe more money on their homes than they would receive from the sale of the home. Plus, after factoring in fees and commissions which come with any home sale, some sellers may owe thousands of dollars at the closing of the home. If they do not have this much money available to finalize the close, it may not be profitable to sell your home.
Attaining the services of a real estate professional to help you assess the value of your home is the second factor to consider if you are determining whether you are ready to sell your home. Although the housing market has stabilized from the high we experienced in 2010, and the economy is improving, this still means that having an experienced real estate professional around is just as important as ever. A real estate professional, especially one with a certificate in appraising, will be able to determine what a fair listing price of your home is and will also help you by marketing the home, meeting with potential buyers, and negotiating price offers. This could help you maximize the total sales price that you receive for your home sale.
The condition of your home is the third factor which you must consider when determining whether you are ready to sell your home. When looking to sell a home it is very important that your home is in good physical condition. First, if your home is poor condition potential buyers will be turned off by it because it will not be as aesthetically pleasing as a home that has been well taken care of. Second, prior to a purchaser buying a home they will almost always have a home inspection ordered prior to close. If the inspection finds a lot of deferred maintenance in the home you may have to spend thousands of dollars on credits at closing to pay for the repairs.
The timing of your move is the fourth factor to consider if you are determining whether you are ready to sell your home. Although you likely cannot afford to buy your new home before you sell your old one, you should have an organized plan of what you want to do after you move. During the process of deciding whether you should sell your home, you will be thinking about reasons why you want to sell. Is the location of your current home no longer satisfactory? Would you like to move into a different style of home: from a house to a condominium perhaps? Not having a plan could force you into purchasing a new home, which is not to your liking; and this could end up costing you significantly in the long run.