6 questions you need to ask yourself before taking the leap
From wanting a bigger space or moving closer to work, there are myriad of reasons people decide to place their home on the market. No matter the reason, selling your home is not something you can do on a whim. Rather, you need to consider a number of variables and options before you place a “for sale” sign on your home.
If you are seriously considering selling your home, here are a few important questions to ask yourself before taking that leap.
What can I expect to fetch for my home?
It is vital that you establish a ballpark figure on how much you want to sell your home on the market. Knowing the price range you can expect to receive in the proceeds of the sale of your home help you establish how much you can afford for your next home, and ultimately if it is even worth selling your home.
What costs will I incur in the process of selling my home?
The process of placing your home on the market entails much more than placing a for sale sign on your front lawn, there are costs involved. These costs will also impact your ballpark figure. For instance, do you plan to obtain the services of a real estate agent? Do you have repairs needing to be completed? Do you plan to hire a professional to stage your home? These are a few of the possible costs you will likely need to consider in the process of placing your home on the market.
Post-sale, there are additional costs that also impact your final net amount. These closing costs may include legal costs, adjustment costs, and mortgage discharge fees.
Finally there are costs associated with selling and moving into a new home such as mortgage insurance, land transfer tax and a variety of moving costs. These costs combined will impact your net ballpark amount and ultimately your affordability.
Do I need a pre-approval for my mortgage?
In order to know your overall affordability, it is imperative you get pre-approved for a mortgage. Even though you are a homeowner, there may have been changes to mortgage rules and even your own personal financial situation since you first became a homeowner. Knowing your market sale price, possible costs and pre-approved amount will provide you with a clear financial picture of how much you comfortably afford for your next purchase. Contact a MA broker to see how much you can be pre-approved for.
When should I sell my home?
If you have flexibility with respect to time (i.e. you don’t have to sell your home quickly due to an out-of-country move), place your home on sale during prime season. For the housing market, primetime is spring. This is the time when a greater proportion of prospective buyers are actively looking and hence, you will receive the most traffic and likely sell in a shorter time frame. Additionally, with more buyers on the market, it is possible you may receive multiple offers and may be sell your home for a very competitive price.
How do I prepare my home for sale?
When placing your home on the market, the key selling factor is curb appeal. You need to ensure your home is as visually appealing as possible. As result, you will have to invest time, equity sweat and perhaps money in sprucing up both the interior and exterior of your home.
Should I just renovate instead?
It is clear, selling your home and moving does not come cheap – there are many associated costs that make the process expensive. Are you thinking about moving because you would like more space or perhaps a more up-to-date home? If so, have you considered renovating instead of moving? Many homeowners are apprehensive about renovating but in the long run it may be cheaper to renovate than relocate. Also renovating your home can most definitely add more value to your home in the form of equity. So before you decide to move, take some time evaluate the renovation option as it may be a better choice for you.
Selling your home involves a considerable amount of financial, time and emotional investment. With the time you do have, evaluate and take stock of if you should place your home on the market and if so, know how much you will have to invest and how much you can expect in return. Additionally, have a strategy in place – the act of selling and moving into a new home is heavily process driven and requires one to be organized, efficient and able to effectively deal with stress. Lastly, don’t be afraid to consult with professionals.
Always consult the professionals. As a MA mortgage broker I have a wealth of knowledge and expertise and I will be happy to provide you with the advice to help you make your decision. Contact me at 514-295-8070 today!