You’re thinking this is the year to sell your home. Life has a way of changing our circumstances that cause personal matters that are worthy of selling your home. This includes finding a new job in a new city; a growing family; an unfortunate divorce; a change in lifestyle that may not require a larger home. Factors like these certainly help in deciding on the right decision. Once that decision is set, then it’s important to be prepared for the next step. Here are 5 things to know when selling your home.
1. Finding Your New Home
One of the first things to consider is where will you live next. It will be based on your needs and also on your budget. Oftentimes, home sellers will purchase a new home that better suits their need. If children have all grown and moved away, then downsizing is often their goal. If the family is growing then they will search out more space and proximity to good schools. Another option is renting, especially if their plans for the future are not fluid. Another popular option is to consider a multigenerational home that accommodates children and parents. This is a great option for keeping the family together and sharing expenses. Be sure to think through what your needs and wants are in your new home.
2. Current Real Estate Market in Your Area
Another important thing to know if you are selling your home is about the current real estate market in your area. This data will tell you how much buyer demand there is and what type of homes will be your competitors. This will help sellers to have clear expectations about how long it will take to sell the home and for how much. For example, right now in Northern Virginia, interest rates are down to around 6.5%. Because this is a big drop from last year, buyers are back out shopping for homes. As inventory of homes for sale remains low, this is good news for the home seller. The possibility of having multiple buyers interested increases the chance of a homeowner getting the price they want on their home. It also means that the home will likely go under contract in less time. Knowing the current real estate market gives you an idea of how the home selling process will likely go.
3. Financial Implications
The next important thing to know when selling your home is how much money you will likely get on your home. Your real estate agent can get this information for you. They will show you what you can reasonably sell your home for and then deduct the costs of selling. Costs include local property taxes and fees and other closing costs. This is how much you will net from the sale of you home. Also be sure to consider the costs for repairs on your existing home, your moving costs, need for new furniture, and tax implications.
4. Timing
It is also important to know how long it will take to get your home ready for sale, on the market, under contract, and to get to closing. Knowing these will allow you to better plan for the future. Scheduling when you will likely need to move into a new place and when you can expect funds from your home sale are crucial in planning.
5. Your Next Chapter
Making the move to sell your home comes as a major life change. According to Psychology Today, “Moving is one of the top stressors in life, preceded only by divorce and death of a loved one.1 The anxiety of moving is largely triggered because you are adapting to a new environment.” Keeping this is in mind helps for you to go a little easy on yourself. This is not the time to start another major project at work or plan some big social event. Allow yourself some down time and be sure to seek help and advice from friends and family. The good news it that there is also a level of good excitement. Moving to a new environment offers a fresh new start. A new home often means making more friends; meeting new neighbors; learning new entertainment options are just some examples.
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BOTTOM LINE
Deciding to sell your home is most certainly an important life event that should not be taken likely. Review these key items you need to know and take some time to think through them. Also enlist the help of an experienced and reliable real estate agent you trust to help you along this journey.
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Also feel free to compare this update with last month’s Market Update – November 2023.
