If you’re thinking about selling your home, you probably have a lot of questions. Is this the right time? Where do I start? How much is my house worth? If I sell my home, will I be able to afford another home? Let’s look at some common questions about homeselling so you can make an educated decision about whether or not now is the best time to put your house on the market.
Where Do I Start?
Many homeowners go online to search for information on selling their house. Why not, it’s a great starting point. There are so many articles and websites, you may get lost in the abyss. “How do I sell my house fast?” “How do I sell my house by myself?” Without digging too deep into the web, consider the physical aspect of your house.
Start by looking at the overall condition of your home. Could you put it on the market tomorrow or does it need some work? Maybe flooring needs to be replaced or the walls need to be painted a neutral color. Are there drafts coming from the windows leading you to believe they may need to be replaced? Does the kitchen faucet leak? When looking at the overall condition of your home, you might find that you're not ready to put it on the market because there is too much work to be done.
Do I Need a Real Estate Agent?
Whether or not you need a real estate agent can be narrowed down to how much you know about the selling process. Do you know which updates and repairs to make to attract buyers? Do you know the price similar homes have sold for in your neighborhood? Do you know what to put on the seller's disclosure form? Do you know how to schedule showings? Do you understand buy-sell agreements and how to negotiate offers? There is a lot to take into consideration when selling a house without an agent. I recommend consulting with 2-3 established, licensed agents who know your neighborhood and the current market. It isn’t going to cost you anything to sit down with them, discuss your concerns, get answers, and ultimately determine whether or not you need help from an agent.
How Much is My House Worth?
Determining the value of your home is a very important first step in the selling process. Guessing isn’t advised. Take into consideration how your home compares to other homes which have sold in your neighborhood. Is your house updated like the house down the street that sold for $523,000 last month? Will your 25-year-old roof affect the price of your home? Is your home show-ready (neutral walls, decluttered, staged, etc.)? Does your landscaping add to the overall value or detract from it? Are you in a seller’s market? Should you sell it based off of the estimated price you saw online? A real estate agent can answer all of these questions and create a CMA to give you a better idea of your home’s value.
Emotional Factors
Consider whether or not you are emotionally ready to sell your home. Can you leave behind the family memories, amazing neighbors, quiet street and your English garden? Are you prepared to deal with negative feedback from potential buyers? Can you keep your house show-ready and be prepared to quickly leave whenever an agent wants to stop by for a showing? Sometimes the emotional side of selling your house can be enough to stop you from moving forward.
iBuyers
You may have noticed you can now use an iBuyer to sell your house. An iBuyer is a real estate investor who uses technology and an AVM to determine the value of your home, and then they make a quick cash offer. You might consider getting an iBuyer offer then talk to a real estate agent to see how it compares to their personal assessment of your home’s value. Which option provides the greatest profit?
Equity
If you’ve been in your house for 5+ years, you may have enough equity to pay off your current mortgage and pay a 20% down payment on your next home. If not, you might want to reconsider selling at this time. To get an idea of how much equity you have in your home, subtract your mortgage balance from the estimated market value.
How Much Will it Cost to Sell My Home?
Believe it or not, selling your home comes at a cost whether you’re selling it on your own, through a real estate agent or an iBuyer. Not only will you need to invest in some minor and possibly major repairs, you will pay for real estate agent commissions, seller concessions, closing costs, repair costs, housing overlap costs, etc. Without the help of an experienced real estate agent, these expenses may leave you blindsided.
Conclusion
If you’re thinking about selling your house, take some time to determine if you’re ready. Do some research on homes that have sold in your neighborhood, familiarize yourself with the buy-sell agreement, learn how to negotiate, talk to an experienced real estate agent or two, and take your time deciding if you want to put your home on the market. Selling your home is a major transaction and you want to get it right, so do your research and seek out advice from professionals.
Let us know in the comments if you would like to take advantage of a free home evaluation, provided by a licensed real estate professional.
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