SELLING your home can be COMPLICATED. Here’s a few questions you might be interested in exploring:
Why sell my home?
There are at least 10 major reasons why people choose to sell their home. No matter what time of year it is, it seems that there is no shortage of properties on the market. Are you wondering why there is always so much competition when it comes to selling a house? After all, moving into a house is a big step, and for most people this is meant to be a long-term purchase. Yet, there are many different circumstances that could lead to you wishing to sell your home. If you have decided to take this leap, you’ll want to have a qualified Realtor on your side to assist you.
When is the best time to put my home on the market?
Timing can be everything. When you put your home on the market impacts the price you get. If inventories are low and there are buyers in the market for your type and price of home, you can get more than if you were competing with five similar houses in a slowing market. The time of year may impact property values as well. For example, real estate usually slows in December because no one wants to be in the market during the holidays. People usually buy in December because they have to, not because they want to, and inventories are generally lower. So sometimes December is one of the best months to get the highest price for a house. Because every situation is different, the sale of a home has to be evaluated at the time the house goes on the market, not using market conditions that are six, three, or even one month old.
You need to know what is happening in the market right at the time you plan to sell. News media is always saying this and that about the real estate market, but this is often far from what is actually happening. You may have heard how bad the real estate market is across the country, but you need to know what it’s like where you are selling.
If you’re thinking of selling your home, you may be fantasizing about the profit you’ll reap from the sale or calculating exactly how much you’ll need to pay off your current mortgage and have enough left over for a down payment on the next house. Before your fantasies run amok you need to realize that, while you can estimate the value of your home in a variety of ways, the true value is only what a buyer will pay for it. That said, there are several ways to get a strong idea of how much a buyer will pay for the property in current market conditions.
Your home equity is the difference between the appraised value of your home and your current mortgage balance(s). The more equity you have, the more financing options may be available to you. Your equity helps your lender determine your loan-to-value ratio (or LTV). When there is more than one loan against the property, the total of all loans divided by the property value is called the combined loan-to-value, or CLTV.
Realtors are often asked by sellers whether they should sell their current home before purchasing a new home or should they move forward with the purchase of a new home and then sell their current home. Both options hold distinct advantages and disadvantages. There’s no “best” answer; each option contains trade-offs. Your personal circumstances and preference might be the deciding factor. Some homeowners enjoy holding onto their ability to live in their current home until they find a better alternative. Others don’t want to make a financial commitment to a new home until their current home is sold, or — at the very least — under contract. Factors like whether a homeowner is moving locally vs. out-of-state, whether or not the homeowner has children in a particular school district, and the homeowner’s down payment funding also play a crucial role in the decision.
Some people are very successful at selling their home themselves. However, it does require work. When people tell me that they are going to sell themselves because they want to save the commission, the fact is they actually are going to earn the commission they expect to save. But not all of it. Many FSBO (for sale by owners) end up paying the buyer’s agents some commission, usually 3 percent. One of the biggest problems with a FSBO is the difficulty in showing the home because the owner works. Another complication: it is always better if the owner is not present when a prospective buyer sees the home, but if you’re the agent too, you need to be there, and typically at the buyer’s convenience. Another potential concern is having a perfect stranger knocking on your door wanting to see your home. Real estate agents sell most homes, so a FSBO needs to market the home to all the other agents for the best chance of selling it. Even in the hottest of hot markets not all FSBO’s sell, you have to price your home correctly, make it easily available to show, and market it effectively. And don’t get overly emotional or take the negotiations too personally. You may be tempted to put a sign on your lawn and handle the transaction yourself, but that would not be wise. You think you are going to save money by not having to pay commission fees, but you could end up paying more. Why?
What are the tax implications of selling my house?
Federal tax law allows home sellers a tax exclusion on the capital gains from the sale as long as they meet certain criteria, the most important of which is that the home must be the primary residence for at least two of the previous five years. Single taxpayers can exclude a profit of up to $250,000, and married taxpayers who file joint returns can exclude a profit of up to $500,000. You can use this exclusion more than once in your lifetime as long as you haven’t taken the exclusion within the past two years for another house.
How much does it cost to sell a house, besides agent commissions? Ever wonder how they calculate title fees, escrow fees, and other charges for home sellers? The cost to sell a house depends on a number of factors, including the final sales price, the type of property, and the terms of the purchase agreement. It’s impossible to know exactly how much you will need to pay ahead of time. The final closing costs aren’t calculated until after close of escrow. Once everyone is paid, you receive a check from the escrow company for your Seller Net Proceeds.
This depends on the market and your competition, but generally, home sellers believe they have to do more to their property than they really do. The first impression of a home is when you drive up to it and when you reach the front door. Those areas should be cleaned up to look in good order. Once inside, you should let in as much natural light as possible, and rooms should not be cluttered. Kitchens, particularly, should be free of clutter, and basements should be clean and bright (use 100 watt light bulbs) and have the windows cleaned. If your carpets are very dirty, you might want to have them cleaned. Spend as little money as possible and don’t get carried away.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.