You need to ensure you have enough equity in your house before you can make a decision whether to sell it or not. Fun fact: Many house owners had negative equity during the 2008 housing crisis, which resulted in their loans being more than the actual value of the house.
Home Equity:
It refers to the percentage actually owned by the house owner versus how much the bank currently owns. For instance, someone making a cash purchase owns 100% equity in their house. Most people generally take a mortgage for purchasing their house with a 10% - 20% downpayment, which allows them to build equity in their house without being strapped for cash.
Home equity can be calculated by reducing the balance loan amount from the fair market price of the house.
Homes for Sale Labelle can get you an estimated house value figure. A real estate agent can also help you arrive at a fair price and your own home equity by analyzing the house and all other aspects.
You’ll also need to make moving arrangements if you’ve decided to sell your house. Most sellers generally finance a new home purchase with the proceeds of the older one. If you don’t handle this right, you may be faced with some irksome logistical troubles.
Should you buy a house first or is it better to hold it off until you have a buyer for your current home? Will the realtor add a clause to the contract giving to more time to leave after the sale is over? Can you make payments on both mortgages if there’s an overlap between the two?
You’ll need to resolve these questions before you sell your house to ensure you don’t have to run up against any complications in the future.
The Days on Market (DOM) indicator is extremely critical when it comes to determining how much time you’ll take to sell your house. DOM is a statistic used by realtors to track the number of days a house has been on sale. You can check up on the average DOM period for homes in your neighborhood to see how long it might take for your home’s sale process to be over.
It all eventually boils down to factors that are beyond your control, such as whether your neighborhood is attractive to prospective buyers, how many homes are available for sale nearby, and the season – home sales peak during the summer months and hit rock-bottom during the winter.
You should also check up on other statistics like price appreciation, home sales records, and interest rates to see how your timeline might be impacted.
Sellers are legally obliged to inform prospective buyers of any issues or repairs that need to be done. Most homebuyers are looking for ‘move-in ready’ properties that don’t require them to make any major changes or repairs. Around 76% of young homebuyers are wary of going for homes that aren’t ‘move-in ready’ – you’ll need to keep this in mind.
Therefore, it’s better to make all the repairs before you list your house. Certain expensive repairs, such as fixing the pool or an HVAC unit can significantly lower your chances of getting the home sold quickly enough.
However, that doesn’t mean you need to make large-scale renovations. While they do improve property valuations to some extent, not every project will be of use. The impact a home renovation can have on your property valuation depends on the market conditions and the current home value. We recommend making small, cosmetic repairs to ensure your house becomes more attractive to prospective buyers, thus lowering the DOM period and bumping up the valuation.
If you own an expensive home, adding wood floors or a pool can help bump the price up. On the other hand, bathroom renovations and kitchen remodels pay off better for cheaper homes. Know your market and make the renovations wisely.
Real estate agents are invaluable during the selling process. Firstly, they’ll take care of the sales process for you. They’ll list the house, take care of the showings, handle photography, market the house, and see everything through until the sale happens. You can also request real estate data regarding the local market from them to price your house properly.
They will also help you come up with a comprehensive plan to sell your house and design a marketing strategy that gets your house sold as soon as possible. They’ll handle the marketing side of things, negotiate prices with the buyers, and resolve any paperwork related issues that come your way. By engaging the services of a professional real estate agent, you can sell your house at a fair price and walk away with a good deal. At the end of the day, isn’t a good deal what we want?
