Considering selling your house? At one point or another, all homeowners will begin contemplating this. Whether you’re ready to embark on life’s next big adventure, expand your living quarters, or change locations, the idea of selling your home can seem quite sudden. As with any big change, these thoughts may be overwhelming, confusing or even scary.
However, it’s important to find clarity about this choice. Before jumping into a home selling process, take some time to explore the circumstances that are leading you towards making this decision. Maybe it’s the right choice but not the right time, or maybe some changes need to be made before listing your property.
In order to get the most out of your decision, ask yourself these 4 key questions to decide whether it’s the right time to sell your home.
When homeowners first start thinking about selling their property, the initial reaction should be to look inwards. For most people, real estate transactions will be the largest deals made in their entire lives – but it’s about more than just finances. A home is far more than just a place to live. It’s where life happens, where residents feel safe and secure, and where you spend most of your time.
Before choosing to sell a home, you should investigate the unique motivators that are driving you to make this decision. Why do you want to make this change? What are you looking to do in the future? What are your real estate goals? What emotions are attached to this sale? By answering these inner questions, you’ll be able to see if this is the right move to make. With better insight, you’ll be able to take a powerful stance and make the most out of this deal.
Once you know that you’re ready to begin the selling process, it’s time to dive into the specifics. When thinking about selling your home, sometimes people forget to factor in the detail of time. You need to start creating a timeline for your home’s sale to see if it’s realistic.
Many people don’t know this, but timing plays a large role in the real estate market. There are times of the year that are most advantageous to start selling your house. Timing can affect the closing price of your home, days on the market, and the costs associated with the entire transaction.
DOM (days on the market) is one of the best statistics to gain insight on how long it will take a home to sell. DOM represents the number of days between the time a property is listed and when the final deal is closed. Many factors affect a property’s selling time, such as the time of year, economic factors, and the local market conditions. To get a clear idea of your potential transaction time, look into similar properties in your area and their DOM.
Aside from time, money is also a key factor. The best way to find out how much your home can sell for is by comparing the value of similar properties. This research will provide insight into the realistic price ranges you’ll be working with. Look for homes with the same number of bedrooms and bathrooms, a similar size, and comparable amenities. If you’re looking to get a more exact sum, consult a professional agent or realtor service.
Sellers will ideally have enough equity to cover the sale’s costs, pay off the remaining mortgage, and costs of moving into your new home. If you find out that you don’t have enough equity to comfortably make the sale, it may be best to wait it out. Studies have shown that it takes about 5 years to build up sufficient equity to move, sell, and pay off remaining balances. This is referred to as the 5 Year Rule, and it can significantly help sellers achieve their real estate goals.
Confidence and clarity are keys to success in any endeavor, so make sure you’ve covered all the bases. Once you’ve asked yourself these questions, you’ll be ready to move forward with the sale.