Most homeowners are emotionally attached to their first home. There will never be another first home, and that can lead some owners to hold on to it for far too long. When it's time to sell, it's only natural to feel uncertain and confused. Read on and find out what owners need to consider before they make the decision.
Why Are You Moving?
If you are thinking about selling, ask yourself why. Understanding your motivation for selling will inform your decisions every step of the way. Space, for example, is a common reason for selling. Some need more and some could do with a lot less of it. Empty-nesters and retired owners might want to consider a condominium if maintenance issues are beginning to appear.
Is It Affordable?
If a larger or more costly home is on your wishlist, do some preplanning. Examine your budget and speak to a lender about how much home you can afford. You likely expect to sell your current home and use any equity for a down payment. That brings your mortgage payments down but don't get carried away before also calculating property taxes on a costlier home, higher homeowners' insurance premiums, and the potential for more maintenance issues with a larger home.
Can You Handle It?
Many owners are so wrapped up in happy memories that they overprice their home and it just sits on the market. In most cases, moving into that new home won't be possible without a sale. To avoid delays, ask a real estate agent to perform some calculations to get an idea of the listing price. Make an effort to separate your emotions from what is more of a business deal so that you can make the sale.
How Does Your Home Compare?
Speaking of the listing price, have your real estate agent do some comps. That means comparative market analysis, and it involves checking several factors to come up with how much similar homes have sold for in your area. That gives you the market price of your home and is the starting point for a listing price. Comps look at completed transactions within a fairly recent time period of homes with similar sizes, rooms, features, and, most importantly, locations.
Talk to a real estate agent about your fears and worries and find answers. Just like your initial home purchase, you are capable, with an agent's help, of selling your home and finding a new dream home — all at the same time. Get started today!