Are you considering selling your home? It’s certainly not a decision to be made lightly, especially after making such a large investment. Whether you’re downscaling, upsizing, moving to a new area, or are looking to make a profit – there are always financial considerations to be made when it comes to selling a home.
Here are some important financial factors that may determine when and if you’re ready to sell.
Your home’s worth
Before putting your house on the market, you’ll want to have an understanding of the value of your property. This can change over time, which is why the first step is to see how much your house is worth in the current housing market.
You can do this by researching real estate websites to find out how much similar homes in your area have sold for. A formal appraisal is another approach that can provide you with a more accurate number based on home sales in your community. Of course, a real estate agent can also assist in determining a listing price for your home.
How much it will cost
Finding out the value of your home is just the beginning of the selling process. Prepping your home to be sold is where things can get pricey. You’ll likely need to do a deep clean, paint, or even repair anything you’ve been waiting to fix. If you want a higher value on your home, you should plan for any home renovations ahead of time.
Outside of prepping costs, there are other fees associated with selling a home that you might not have thought of. A typical real estate agent, for example – will typically charge a commission fee of up to 6%. You should also expect to pay a closing cost of 1-3% of your house price, which includes the home inspection, appraisal, and insurance costs. Be sure to list these expected extra costs on a spreadsheet for reference as you begin the process.
The housing market
As a seller, you’ll want to evaluate the housing market to get a better idea of when is the right time to sell. Factors like interest rates on home loans can be a key indicator. Time of the year can also make an impact on if you’re able to sell and for how much. Depending on where you live, the market typically peaks in April through July with slower periods in the winter months due to the cold weather and holidays. Overall, timing definitely plays a role in how much you’re able to sell your house for.
Selling takes time, planning, and research. If done right, you’ll be able to successfully sell your home and even make a profit. Outside of finances, there will be other factors to evaluate and our financial experts are here to help. Contact us to get started, or stop into your local branch on one of our upcoming branch mortgage days to speak with a representative on-the-spot!