There comes a time when the idea of selling your home can pop into your mind. Maybe, you want to start fresh and move on from something. Others may realize that owning more than one home is actually more of a liability than a convenience.
Most of the time, people decide to sell their home because they just really need the cash for something more important like funding for a new business or to pay medical bills. Whatever it is, the right to sell your home is your choice and your freedom to do as a homeowner.
But, before you hop into a frenzy of activities like putting up announcements and showing your home to potential buyers, you need to think things through.
Ask yourself these questions:
1. Do you really need to sell your house?
Is this just a spur of the moment whim while baking a batch of chocolate chip cookies or washing your car? Clear your head of what you can do with the money from the sale before making a final decision.
If your house is still in mortgage, you definitely should not be thinking of selling just yet. Pay up everything first, you will not attract buyers with the prospect of debt. Also, if you only have one house and you decide to sell it, where are you going to live? Remember the amount you might have to pay on rent if you do not own another home may just suck up what you can get from selling. Weigh your reasons for selling, make sure that they are all rational.
2. Should you hire a realtor or do it yourself?
In real estate, realtor is a middleman, someone who goes between the seller and the buyer to set up not only the connection, but also the necessary tasks in making a sale possible. You, the homeowner, hire this person to handle the sale for you, this way you do not stress yourself over every minute detail in the process.
However, there is also a thing called FSBO (For Sale by Owner) – a practice wherein the homeowner himself handles everything about the sale. The owner will process the paperworks, set up the meetings, plan things, or generally you do everything that needs to be done.
To decide which way to go, try to see what you know about selling a home. You might figure that selling it yourself will lessen the costs, but do you believe you have what it takes or the time to accomplish all the associated tasks in selling a home? You could end up jeopardizing your own finances if you make the wrong decision.
3. Is this the best time to sell?
Take a look at the market these days. How is it doing? Follow real estate news to know if this is the perfect time to sell a house. Knowing current events and statistics of the real estate market will help you make an informed and educated plans. It will help you strategize what needs to be done more accurately.
Visit websites that offer great real estate content and news like Forbes, Wall Street Journal, Bloomberg, Realty Times, Yahoo Finance, even websites in your locality that offer real estate news and advice. These are going to be your best sources in finding out if it will be wise to sell your house at this point.
4. Is the house in need of repairs?
If after a careful deliberation you do decide to sell your home, take the time to go over every nook and cranny of your house. Asses with a meticulous eye if there are any repairs in order for any part. Before selling your home, you need to settle all these repairs. This way, when you present your home, it is in the best of condition making it even more attractive to potential buyers because they only need to move in when the documents are signed.
Make sure that you set a specific budget for everything though, no use going overboard for a house you are going to sell anyway. The idea is to make it damage proof not remodel it entirely.
5. Do you have any backup plans?
If your reason for selling the house is to put some pad into your finances, either to start your own business, pay off some debts, or to just generally increase your net worth, then you need to consider all possible scenarios. Selling a home can take time, depending upon the state of the real estate market, the location of the property, the condition of the house, and the price. This is all well and good if you are not in a hurry. But, what if you need the money as soon as possible. Do you have any alternative project for bringing in revenue?
Things will not always go as smoothly as we want it to, so it is important that for every step you make for the sale of your home, you have a backup plan behind. This is for those “just in case” moments when problems arise from the original plan. Doing this will help to avoid mishaps that could damper the achievement of your goals. It will also minimize drawbacks and loses.
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