Deciding if you should sell your home is a big decision. As the experience can be emotional, costly, and stressful, it’s not a decision to be taken lightly.
Many people are inspired to sell by a hot market or desire for change and don’t consider the various factors influencing their decision, resulting in costly mistakes.
If you’re considering listing your home and moving on, here are some crucial factors to keep in mind.
Working with a Real Estate Agent
One of the first decisions you’ll need to make about listing your home is whether or not you’ll enlist the services of a real estate agent.
As with anything, there are pros and cons to working with an agent and listing a home yourself.
There is no right or wrong answer for everyone— a lot of personal factors play a part in this decision.
Realtors bring a lot of value and experience to the table.
They’re able to use their knowledge and resources to help you set the right price, market your home to qualified leads, handle the negotiation process, and walk you through the closing legal documents.
However, all of this comes at a tremendous cost.
Realtor commissions often range from 5-8% of the selling cost of your home.
On a $200,000 home, that means paying an agent over $10,000. For many home sellers, the cost of an agent isn’t feasible.
Fortunately, there are many more resources available to sellers than ever before, largely thanks to the internet.
Resources like houzeo.com can help sellers create a professional-looking listing and access many of the resources agents use to market homes.
Professional real estate photographers can showcase your home in a captivating, attractive way that appeals to potential buyers.
From professional cleaners to flat-rate brokers, there are endless options available for managing a for-sale-by-owner (FSBO) listing.
Social media has also revolutionized how people sell their homes.
This powerful form of free advertising is a fantastic way to share your listing far and wide, with minimal planning and experience.
It’s important to sit down and evaluate whether working with a realtor is the right choice for your needs.
Also, you can consider selling your property to home buying companies. These real estate investors will purchase your property in its current condition, which means you won’t have to perform repairs and upgrades to your home anymore.
Home buying companies provide a quick cash offer with zero hidden fees and commissions, compared to hiring a real estate agent. After accepting their offer, you can expect to close the deal a few weeks after and get your money in full cash.
However, finding the right home buying company can be quite a challenge as real estate frauds are becoming more relevant in the industry.
Thus, make sure to find a reliable investor within your location that has the experience and reputation in home buying.
If you’re located in Virginia, negotiate only with trusted home buying companies, like the Avante Home Buyers Virginia, to make the most out of your home sale.
There are many reasons for selling a home and oftentimes it’s preferable to do it fast.
Perhaps you’ve inherited a property, or you’ve got a second home and are currently looking for quick cash.
Whatever your situation may be, ensure you reflect on it and determine the kind of selling process that fits your needs.
If you can afford to wait for the perfect buyer while your property is listed and you can fund some renovations to make the property more sellable, then it’s alright to work with a real estate agent.
However, if you’re in a hurry to sell your home, then you should consider other options.
Companies who claim ‘We Buy Houses Coon Rapids’ or in any other location, will buy houses for cash.
These companies can give you an offer for your property quickly and you can have the money shortly after making a deal.
With this option, you can just sell your property without having to think about making repairs because you can sell it as it is.
Pricing Your Home
It’s essential to understand that any home is sellable if priced according to the present market situation.
Because the real estate market fluctuates, it’s important to consider looking at previous sales in your location.
In creating a competitive price for the home you’re selling, find out the average amount that people have paid for homes like yours.
Moreover, take a good look on the real estate market in your state, city, or country, and find your property’s comparables, which refer to properties that have the same features and characteristics as your own.
The Current Market
Before listing your home, it’s important to understand whether you’re in a buyers’ or sellers’ market.
These terms indicate who is calling the shots during the purchase or sale of a home.
If homes in your area sell quickly at a high asking price, you’re likely in a sellers’ market.
Conversely, if homes are sitting on the market for a while before having prices slashed, it’s probably a buyers’ market.
Ideally, you want to sell your home during a sellers’ market.
Unfortunately, some people have to move for other reasons and have limited control over when they list their homes.
However, if at all possible, wait to sell until you’re in a sellers’ market.
Then, consider renting until the market switches back to a buyers’ market to make the most of your money.
If you’re not willing to wait until the market becomes more favorable for you, there’s another option.
It can be a very good decision to sell your property to a cash home buyer like Hawthorne Home Buyers. Here’s why:
- You’ll be able to get a quick sale of your property and avoid the usual waiting time that most property sellers face. You’ll also end up spending money to have it maintained while waiting for the right buyer.
- You don’t need to spend on repairs since they can buy your home as-is.
- You won’t have to pay fees for brokers or real estate agents.
- Selling your home for cash reduces the stress and worries associated with putting up a property for sale. You won’t have to waste your time and effort showing your home to numerous potential buyers.
The cash home buying company will carry out a thorough property inspection then tell you exactly how much your property is worth so you can compare it with other offers you may have received.
If you’ve never considered using this type of sales process, this may be time for you to have a good look, as it will be helpful especially if you don’t have a budget for repairs and want to sell your property as soon as possible.
The Time of Year
Another factor to consider when selling your home is the time of year.
Real estate is a seasonal business that tends to be higher during the spring and summer.
As people get back into school and head into the colder months, the market slows down.
If you have the choice to wait, consider listing your home in the early spring rather than during the winter months.
By doing so, you avoid having your home sitting on the market for months before the high season— which will have potential buyers wondering what’s wrong with it.
Financial Concerns and Considerations
Finances should be a determining factor in whether or not you should sell your home.
If you’re struggling to make ends meet and stay on top of your bills, it’s well worth considering, especially in a sellers’ market.
This consideration is especially important in light of the Coronavirus pandemic and massive layoffs.
On the other side of the coin, you need to consider whether you can afford to sell your home.
One of the key focal points to keep in mind is the amount of equity in your house.
Consider how much you purchased your home for and how much is left on your loan.
It’s important to clarify whether you have enough equity to cover the closing costs.
Upgrades and Maintenance
Another cost to consider is the potential upgrades and maintenance of your home might need to sell efficiently.
These costs could be anything from replacing the roof to upgrading the kitchen.
Consider how much time and money would go into your repair projects and which are necessary for selling your home.
If you have the time and resources to make those changes now, you can consider selling.
Meanwhile, if you prefer getting the most returns when selling your property, you might be better off boosting your property’s value first before selling it as it is.
There are many reasons to want to sell your home, from changing lifestyle needs and priorities to capitalizing on a sellers’ market.
Take some time to look at the decision from various angles and determine whether it’s the right time.