10 Tips to Abide by When Selling Your Home
Selling your house can be an extremely tricky and time-consuming process. It can definitely be overwhelming between trying to avoid the persistent real estate agents constantly badgering at you and the complex tax system. So, what should you consider when trying to sell your house fast?
Why are you selling your house?
Firstly, it’s important to ask yourself why you wish to sell your home. Perhaps you need to know how to sell your house during a divorce and should you sell before or after the proceedings. Or if it’s because you're thinking of moving to a bigger place, also consider the reasons why you are thinking of doing so. Is it out of a pure hasten desire to live in a more luxurious apartment? Or do you actually need the additional space? Think through these reasons carefully, and ensure that the advantages of selling your place outweigh the negatives.
Can you afford to buy the next home?
One important question that you should ask yourself truthfully if you intend to upsize, is if you can afford it.
Your real estate agent or consultant can provide you with the cost breakdown, and based on your income and wealth alone, give you advice on how much you should put aside for your next property. However, you know your own financial situation the best, and hence, you should be the one to make the decision on how much you can actually afford to spend on your next home. Don't get swayed by the opinions of others.
One tip would be to calculate your expenses and income, taking into account the amount you have to set aside for emergencies or retirement. After that, you can make the best judgment for yourself.
What’s is your house worth?
Being aware of the real estate market is extremely important. Do proper research and comparisons with other similar houses to ensure that you know the value of your home.
I know many of us feel like our homes are extremely precious and desirable, and hence tend to be biased when placing a price on them. However, an inflated price will do you no good in terms of attracting buyers. Most people source for the best deals, so if you think you’re going to get an offer at an extremely high price, think again.
We advise against constantly changing the prices of your property, as price instability and fluctuations can not only confuse buyers but can cast doubt on the true value of your property. Also, the longer your house is up on the market, the faster the depreciation of its value.
Have you done your homework to find a good real estate agent?
It’s extremely common to get a real estate agent to help you sell your home. Although it comes with a fee, it takes away a lot of the stress and burden from the homeowner, in terms of pricing and paperwork. Hence, it’s important to source a proper real estate agent who has your best interests at heart.
One piece of advice we have is to select an agent that doesn’t have too many clients at the same time. This is to ensure that they can spend more time carefully sourcing for buyers, to get you the best deal.
Do you have the skills to sell the house yourself?
The caveat to getting an agent is definitely the hefty commission charges, which may lead you to want to take matters into your own hands and sell your house without any assistance. However, did you know that half of the commission charges do not go to your agent, but your buyer’s agent? Hence, these commission charges you ‘save’ only add up to around a maximum of 3.5 percent of the price of your home.
So, if you’re considering getting an agent, you should ensure that you keep your options open and talk to as many agents as possible. Ask them questions that test their knowledge in your location, and ensure they have this acquired knowledge to get you the best deal. You also have to roughly know the value of your property, which you can base on other similar properties.
Have you properly prepared the house for sale?
The best way to get an amazing deal is to have an attractive home that buyers will want to live in. Ensure that you make any essential repairs, and remove any dirt or anything unsightly. Try to keep the place spotless.
However, we advise against making any big changes that would require extensive repair work, such as remodeling or any reconstructions of the place. These can put pressure on you due to it being laborious and tedious.
Do you understand the house’s hot buttons?
What is a hot button? It is a certain aspect of the home that calls out to the buyer and is the main drive to compel them to buy a house. An example would be the location of a property, which may be the hot button for people to choose that specific house.
What are the financial ramifications of selling?
As mentioned previously, the financial aspects of selling a home are of utmost importance. You have to be fully aware of the economic result when you sell your house. Ask yourself many questions, like the additional costs of repair works to the house, and ensure that you have the answers to back yourself up.
Do you know the rules for capital gains taxes on the sale of a house?
Did you know that you may not have to pay tax when you sell your home? That’s right, you can get a tax exception from up to $250,000 to $500,000 for the single and married respectively.
However, you will have to declare your house as your principal residence for between two to five years for most people, and one year for those with special conditions. It is important to be aware of these laws, which can save you a lot of worry about the excessive amounts of taxation we are used to paying for.
So, even though selling a home can be a rather arduous task, as long as you keep in mind these 10 tips, you’re sure to avoid getting scammed or ripped off!