Are you ready to sell your home?
Whether you're looking to downsize or expand your family home, we all sell our homes at some point. In fact, the average person in the US is likely to move 11 times in their lifetime. But selling your home isn't an easy decision, and you must make sure you're making the right choice.
Keep reading for our guide on what things to consider when you're selling property.
Why Are You Selling?
When considering selling your property, think about why you're doing it. Make sure your reasons are good ones. For example, has your family outgrown your current home and need more space?
Have your children left the nest and you now want to downsize to save on costs? Have you gotten a new job in a different city and now need to move? Whatever the situation, weigh the pros and cons with care.
Can You Afford Your Next Home?
When you want a bigger more expensive home in real estate terms that's called trading up. If this is what you're planning on doing, make sure you can actually afford the added cost.
There's more than the extra mortgage cost to think of too, running the home will become more expensive. Insurance will go up as well with more space to cover.
You must not leave yourself in a position where you will struggle with costs. You could end up losing your new home if you default. Remember a lender will tell you the most you can spend. They won't tell you what you can afford and still meet other financial goals/requirements.
What’s the Value of Your Home?
Make sure you have an idea of what your home is worth before you decide to sell and if the time is right. A property manager or agent will help you compare similar homes on the market in your area to get a ballpark value.
If you're in a position where you need a quick, hassle-free sale you might need to go lower than the local asking prices. But you still want to make sure you're getting a good deal, you're not there to give it away.
If you're in no rush it's tempting to ask for more than the local asking price. This isn't a good idea though as it could mean your property stagnates on the market.
The longer a home is up for sale, the more chance buyers will avoid it. They might start to think there are major issues with your home and that's why it won't sell.
Keep in mind that there will be negotiations and you might have to be flexible on the price. You need to accept that before you put your home on the market.
Have You Found a Good Agent?
Most people choose to list with an agent for a good reason, they're experts in selling homes. Even if you're selling a rental property it's a good idea to hire an agent.
As a seller, your goals align with the agent's; the more money the house sells for the more money you get. They're well equipped and motivated to market your home and show it to bring in that top-dollar sale.
Getting a reputable, successful agent on board is one of the best ways you get get the good end of the deal when selling. You can access their network, connections, tools, and knowledge to help you sell fast for the most money.
Have you Prepared Your Home For Sale?
Once your home goes on the listings the real work begins to get buyers through the door. Whether you're buying or renting out a home the principle is the same - make your home attractive to viewers.
Consider if your house is ready for sale both inside and out. Those little fixes you've been putting off, you'll need to get them done. Wobbly door handles, chipped or smudged paintwork, that tired front door. It all needs fixing up.
Then your home will need a deep clean and tidy at the very least. It must also remain this clean and tidy throughout the duration of its time on the market which isn't easy.
Property management advice for renting and selling is to consider staging your home. Professional stagers emphasize the best aspects of your home and reduce the worst. They create a design that draws buyers in but remains neutral enough for them to picture their own lives.
A good agent will tell you how ready your home is for sale, and what you'll need to do to improve your chances. Listen to them, don't get defensive, and consider if those changes are doable.
What Will It Cost You to Sell?
Consider the financial consequences before committing to selling your home. For example, what will it cost to make those fixes and changes your agent suggested? How much will staging cost? What figure are you expecting to go towards your next home?
Unless you're in the position to own two homes, it's best to sell your current one before committing to your new home. Though, if you're able to have two homes, it's worth considering renting your old one out instead.
If you're selling before buying your new home, you can ask for a long close of escrow and rent-back. This gives you time to close the sale of your new home, avoiding being homeless for a while. But it needs to be in place at the start to avoid nasty surprises and stress later down the line.
Do You Know About Capital Gains Taxes On House Sales?
Under current tax laws in most cases, sellers will enjoy a large tax break. For single taxpayers, up to $250,000 of capital gains are free from tax. For married couples who file their taxes together, it's up to $500,000.
To qualify the house must have been your main home for at least 2 of the past 5 years. If the seller is isn't able to look after themselves either due to mental or physical illness, it's reduced to 1 year. You can also only use this exclusion once every 2 years.
For most sellers, your profits will come within these figures so you won't have to worry. If your home is selling for more money though, remember you'll have to pay tax on anything over the set limits.
When Selling Property Make Sure It's the Right Choice
So, there you have it! Now you know these top things to consider you should know if selling property is right for you.
Make sure you're selling your home for the right reasons and that it makes financial sense. It might be nice to trade up but not if you'll be living paycheck to paycheck. Consider the selling process in full and every consequence that will come from it. It's a big decision, so you must make sure it's the right one.
If you're looking to sell your home in North Carolina, contact us today. At Bottom Line Property Management we've got the local market experience and knowledge to meet all your property sale needs.