There are a lot of things to consider if you are deciding to sell your home. You want to think about the amount of equity you have, your ability to buy a new home, and all the costs of selling. It is also important to understand the local housing market and how your goals will be affected by seasonal trends.
If you’ve been asking yourself if you should sell your home, consider asking the following questions:
How much is my home worth?
To estimate how much your home is worth, most real estate professionals compare recently sold homes in your neighborhood that are similar to yours. These comparable homes are often referred to as “comps”. By comparing the sale price of different comps, you can get a sense of the price range home buyers might pay for your home.
Do I have enough equity to sell my home?
You’ll typically want to have enough equity in your home to pay off your mortgage, the costs of selling, and the costs of moving. Many people also wait to sell once they have enough equity to put towards a down payment on their next home.
How much will it cost to sell my home?
When selling a home, many people fixate on the 5-6 percent that’s typically paid in agent commissions. However, the total cost of selling a home can come closer to 10 percent of the sale price. Some of these additional costs include seller concessions, closing costs, repair costs, and housing overlap costs if you aren’t able to line up the sale of your home with the purchase of your next. And of course, don’t leave out the cost of your time and sanity.
How long will it take to sell my home?
To determine if you should sell, consider your moving timeline and how when you move might impact your goals. Taking longer than expected to sell can have a financial impact. It can delay a job opportunity, force you to incur costs like storage fees or temporary housing, and of course, selling a home means maintaining it.
Should I make repairs?
As a seller, you’ll be required to disclose any known issues with your home to buyers. You aren’t required to make repairs, but you’ll likely need to price your home based on the costs of needed repairs or you may need to offer a concession to the buyer so they can do the repairs themselves. Expensive repairs like fixing an HVAC unit or fixing a pool, for example, can be a deal breaker for buyers looking for a move-in ready home.
How should I sell my home?
Selling a home the traditional way isn’t a passive experience. It involves preparing your home for sale, working with an agent, making repairs and improvements, showing your home, and negotiating with potential buyers. There is also the uncertainty of when you’ll receive a good offer and if that offer will make it too close.