For many cities throughout the U.S. real estate markets, today undeniably favor sellers. With those markets that are particularly competitive, it can be very tempting to list your home even when you haven’t made a concrete decision to sell. Taking the plunge and listing can be an exhilarating decision, but doing so without asking yourself some important questions could leave you scrambling to figure out what you’re going to do should your home be a highly sought-after property.
If you’re toying with listing, ask yourself the questions below before you make your final decision.
1. How much is my home worth?
Unless you consistently check real estate prices in your area or are comparing comparable homes in your neighborhood, it’s likely you may not know the true value of your home. If you’re thinking of selling, it’s important to find out how much your home is worth. If you are dreaming of a new neighborhood, with the hopes that you’ll make a good amount of money off your current residence, do your due diligence and ensure your home is worth what you think. The last thing you want is to find out your home is worth less than you thought and your dream neighborhood is no longer an option. You can work with your local real estate agent to find out the current market value of your home.
Would you like to find out the market value of your home? Let me know by clicking here.
2. How much is it going to cost me to sell?
When you list your home it can be easy to get caught up in the thoughts of how much you’ll make from selling, but selling a house does not come without costs. Selling can get expensive, especially when one considers all the outside factors that go into a home sale. Again, your local agent can help you understand the total costs (especially since many costs are dictated by where you live in the U.S. and other factors), but as a seller you can typically expect to pay these important items:
- Broker commission (Seller typically pays Buyer AND Seller commission) (7%)
- Staging and home preparation costs (1%)
- Seller concessions (1-3% )
- Repair costs (determined based on inspection) *
- Home ownership/overlap/moving costs (1%)
- Closing costs (1-3%)
Sellers end up paying a fair share of the costs when it comes to the home sale/purchase. If all is said and done, and you’re only going to make $10,000 off your sale, is it really worth it to sell if your main goal is a good return on investment?
Many people think that making upgrades and large-scale renovations to a home to prepare it for a sale will yield a 1:1 ratio on the return, but this is not the case! Call me (561-806-8550) and I will walk you through the financial considerations that go along with preparing your home for market.
3. How long will it take to sell my home?
For some homeowners, a quick home sale is a reality if you live in a city with a competitive real estate market. But for many others, the time it will take your property to sell is really dependent on your where you live and the price and condition of your home. If your home is in excellent condition and priced competitively, it’s likely buyers will be immediately interested. If your house is in need of work, you might not see as many interested buyers. According to the National Association of Realtors (NAR), the median number of days a home in the U.S. sat on the market hit a new low of 29 days in April 2017. With that being the national average, your local real estate market will have its own average (that is also impacted by the condition of your home and the listing price), so there’s no concrete answer as to how long it will take to sell your home, but if you have a home that buyers want, it could be pretty quick.
Want to know the absorption rate for your market? Contact me by clicking here and I will (1) explain what the absorption rate is and (2) give you an estimate of how long it will take to sell your home based on condition, location and pricing options.
4. Should I make repairs?
While many owners may balk at the idea of fixing up their home to sell it, the truth is that making repairs or improving your home can help sell it faster. You by no means have to make repairs when you’re toying with listing your home, but fixing up any pretty blatant cosmetic issues may help your property sell faster. It’s even a good idea to hire an inspector prior to listing to know if there are any issues with the core components of your home to avoid any surprises when it comes to a potential buyer hiring an inspector. It’s important to remember that major items, like issues with a foundation, HVAC system, or any other major part of the home, can be total deal breakers for some buyers, so make a point to assess your home prior to listing to ensure you know what you can leave as is and what you may want to fix beforehand.
* I highly recommend a pre-listing inspection. Buyers will do an inspection as part of their due diligence, so it’s important to note what repairs they may request as part of this process. Even when there is an As-Is Contract involved in the purchase, knowing beforehand and getting in front of what an inspection will reveal can ensure that you will successfully sell your home for the highest possible value.
5. Do I know where I want to go?
This is pretty important, especially if you are inclined to impulsive decisions. For some, selling a home due to a job relocation or wanting to be closer to family provides a for sure destination. But for those thinking of selling with no idea as to where they want to go, it’s a good idea to start thinking about and looking at places to move to. In those markets where homes go fast, you’ll want to have a pretty solid plan as to the area/neighborhood you want to be in, and you’ll have to be willing to compromise if you can’t find a home in your dream area. Seller contingencies are common, so don’t feel like you have to have your home sold before looking at other properties – it’s better to be on top of this than leave it to the last minute and not have a place to go once your current home sells.
It’s always a good idea to plan for all possible outcomes. I go over contingency planning with all my Sellers so they understand timing and their options. Want to know what a contingency plan could look like for your situation? Contact me to set up an appointment by clicking here.