Before Selling Your Home
1. Find the answers to the following questions:
· The three main reasons you are moving.
· Realistically, the price you expect to set for the sale of the property.
· How much money you expect to receive from the sale of your home after all cost are deducted from the sale (e.g., commissions, closing costs, etc.).
· How much money you need to pay off the mortgage in full.
· Your exact budget for purchasing a new property.
· The time it will take you to carry out these activities.
A knowledgeable real estate agent should be able to help you find the answer to each of these questions.
2. Determine the realistic price of your home. A common mistake sellers make is estimating the value of the property based on their neighbors' asking price, (i.e. a property that has not sold yet). The real estate consultant should supply comparable prices based on the properties that sold in the last three to six months.
3. Get your property in the best condition possible. Make sure to take the appropriate actions before putting your home on the market to increase the chances of selling the property quickly, and at the best price.
4. Financial decisions prior to selling your home:
· Contingency provision. If you intend to buy another house, and need the money from the sale of your current property to do so, include a contingency in the offer. In other words, specify in the contract that the purchase of the new house depends on the sale of your current property. If you can't sell your home for any reason, you will not be obliged to buy the other property.
· Financing. Make sure that you are eligible for a loan if you're going to buy another property.
· Pricing. Sell the house at a reasonable market value. Don't waste time offering it at a higher price than the market would pay. You'll only help your neighbor sell his property faster by doing so!