Knowing When to Sell
Knowing When to Sell
It’s a hard thing to knowing exactly when you are ready to sell your home. It’s never an easy decision, even if it’s practical. Market conditions, financial situations, and basic needs all factor in to why—and if—you should sell your home, but emotions have an effect too. Ideally, everything should fall into place in advance. Before you decide to sell your home, you need to make sure you’re ready, and these six signs can help prepare you for your sale.
Having a strong understanding of your financial position will help you understand if it’s a good time for you to sell. It will also help you develop a plan after the sale, and where you’ll be able to go next.
Figuring out how much equity you have may sound complicated, but the math is simple. Subtract your current mortgage balance from your home’s estimated market value. The difference will give you a good idea of how much equity you have to work with. Most importantly, you want to have enough equity to pay off your current mortgage with enough left over to provide a 20% down payment. It’s a good idea to include closing costs and moving expenses in your calculations.
Research the market
When selling your home it’s a good idea to study the local market. Knowing the trends will give you a good prediction of how long your house can be on the market for and at what price.
We have seen a number of homes come up for sale at high prices simply because the homes next door have sold so quickly. It’s not that surprising that these properties are selling at these prices. However around 50% or so end up not selling or lowering the price. If you have a great grasp on the local market you’ll know if it’s the right time to sell your home.
5 topics to include in your research:
- Homes that have sold
- Price they’ve sold at
- How fast they’re selling
- Local Trends
- Interest Rates
This data will help you determine if it’s a good time to sell for the price you want.
Ready for a change
Any change is difficult, and adjusting to new surroundings can take a toll on you and your family. You need to be ready for change. If you’ve gone down this checklist and feel genuinely prepared for major change, you’re ready to sell your home.
Emotionally attached – Any space you live in will be filled with memories—some difficult, some wonderful, all meaningful. It’s natural to become attached your home, but one of the signs of being ready to sell is a diminished emotional attachment. If you’re truly ready, you’ll be able to make the decision rationally, in spite of the nostalgic associations you may have with your home.
Lifestyle changes – Outgrowing a home is a natural progression in life. It is common in first time buyers, young families, and retired couples (empty-nests). If your family is growing or emptying, there is a good chance you want to sell your house to fit your current lifestyle.
Prepare the sale
While you may be emotionally detached from the house, you want the buyers to be able to envision themselves living in the home. Paint the home with neutral colours and remove the personal items. You can move your personal items into a storage unit which will help open more room in your home for buyers to visualize. Here is a short list to prepare your house for selling:
- Move items into storage
- Cosmetic fixes
Have a plan
Having a plan is the most important part. You’ll want to play out all the outcomes in your head with a lot of ‘what-if’ scenarios so you are prepared for anything. If there’s anything you’ll learn in the process of selling real estate it’s that you should always expect the unexpected. Here’s a few questions you want to prepare yourself with:
- What if I can’t find a buyer?
- What if the inspection report comes back with issues?
- What if I have a decent offer the first day on the market?
- What if I am in a multiple offer situation?
Work with an expert
The reasons already mentioned are essential to consider before selling your home this year. But remember, your real estate market is unique—and so is your financial situation. Consult with a real estate expert to give you honest advice. At Winnipeg Sell My Home we bring experience and confidence when dealing with properties.
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