Unless you want to gamble with the possibility of losing a significant amount of money, you must find out your home’s true value in relation to the current market. Just as you would love to sell your home there are people who would love to buy it, however you will soon learn that it all comes down to the numbers! If the price is too low, you will leave money on the table, too high and the house doesn’t sell. To ensure that you are getting the most value throughout the transaction be sure to avoid the mistake of looking for your homes value on county tax appraisals, Truila, or Zillow. So how do you figure out what your home is worth? A real estate agent can provide you with comparable properties that have recently sold, as well as, market trends relating to your home and area. These are the only two things that determine the price for the average home and a realtor can guide you to price your home correctly.
It can be a great learning experience to sell your house, but you need to know what type of activity to expect while your house sits on the market. Seek the help of a professional to help you find out whether prices of recently sold homes are increasing or decreasing. They will also have accurate information regarding the average time it takes to sell a home like yours. How does an increase or decrease in interest rates affect you? What quick fixes can you complete to add value before listing? You really need to understand the trends of the market, so that you can chose an action plan that best suits your situation.
Selling Options (FSBO vs. Realtor):
We love learning from wise and successful people so let’s highlight Dave Ramsey’s thoughts on this topic (Dave Ramsey is a highly trusted Financial Advisor, TV and Radio personality, and author of books like The Total Money Makeover and Entrée Leadership):
“I’ve had a real estate license for 30 years. If I were to put my personal residence on the market today, I’d use an active real estate agent who really knows his or her stuff in the marketplace. I’d gladly pay them their commission, too. Now, why would I do that if I could just sell it myself and save the commission cost? For starters, if I do afor-sale-by-owner, or FSBO, I’m only getting my [home] in front of buyers I can attract from seeing a newspaper ad, Craigslist, and anyone who happens to drive by the house. If you go with a high-octane real estate agent, you’ll have the advantage of being exposed to their entire pool of buyers. More importantly, you’ll be in the MLS, or Multiple Listing Service, database. There, you’ll immediately have thousands of potential buyers. So, who do you think will have the best chance of selling your house? Market exposure is everything in the real estate game! And think about this: Even if you went the FSBO route every time you moved, you might do three or four of these transactions in a lifetime. A good agent closed three or four deals last week! They’ll know all the ins and outs of buying and selling a home, and they’ll walk you throughevery step of the process. Research has shown that between basic mistakes, pricing errors, and lack of negotiation skills, you’ll cost yourself more than the agent’s commission by trying to sell it yourself. Trust me, you’ll get a much better deal—with a lot less hassle” – Dave Ramsey
When your house sells, time is not a luxury you have. It’s imperative that you have a time frame in mind. Do you need to move quickly? Do you need time to find another house? Perhaps you have all the time in the world? Realistically, if you put your house on the market and get a cash offer quickly you may have to vacate the premises within 30 days. Would that expectation overwhelm you? Conversely, you may already have your next house lined up, in that case, do you need to move quickly? If it takes a couple of months for your previous house to sell, could you afford two mortgage payments during that time? Figuring out a time frame, that works for you, will help you make better decisions in the long run.
Is your next stop your dream home? Where have you been wanting to live and what type of house have you been looking for? After you decide to list your home, it’s a good idea to start discussing your next step soon after. Perhaps you already have a house in mind or maybe you haven’t even considered it yet, either way, once your current home is under contract it’s time to get focusedand find the next home for you. Having a few ideas, needs, or desires regarding your next home, ready for your realtor to review, will ensure that time is not wasted throughout the process.
When it comes to selling your house, your financial well-being is at risk. Be wise when making these kind of decisions. If you have any questions regarding this topic, please feel free to reach out and ask, no question is a silly question.