Wow! Have you been keeping an eye on home prices in our community? The Pending and Under Contract Sales Prices are soaring! I’m closely following them to see what their final sales price is. As a professional who’s been serving this community since 2004, I’m even scratching my head wondering, “How did we get here? Again…” Some of the properties I’ve been keeping a close eye on, have gone under contract almost $100k higher than model matches sold this time last year. The economy is strong. Interest rates are going up. While that can cause concern for some, its actually a really good sign for the economy. If I’m scratching my head, I can only imagine what’s going through the minds of homeowners as they are bombarded with all kinds of conflicting information regarding the market. So, how does someone who’s considering selling a home make a smart decision? I thought I’d put together a list of things to consider if the high price tag on your neighbor’s home has got you thinking it could be time to sell.
Where will I go?
Taking into consideration downpayment, interest rates and higher price points, will my new mortgage payment be affordable?
If relocating to another state, what is the market like there? Am I in a position to take advantage of it?
Do I NEED to make a move - or do I WANT to make a move?
Is there financial pressure in my current mortgage situation that selling would alleviate?
Am I relocating for work?
What is the END goal?
Am I reacting to advise from my peers? If so, should I be? (In other words, do they have evidence of success in the area they are advising you on? BE CAREFUL. They may appear to have success AND be completely broke with loads of debt.)
What repairs will I need to make to maximize my equity position? Can I afford it?
The properties in our community that are selling for the most money have either been remodeled or are newer construction.
Your property will most likely need fresh paint and even new flooring to compete with homes built more recently.
Our Agents’ Capital program can assist in determining costs, difference in NET, and even pay up front for renovation if a property qualifies.
Do I plan to move out prior to putting my property on the market?
Can I afford to carry the costs of mortgage and rent as well as utilities at both properties?
Our Agent’s Capital program will cover moving expenses and rental costs until a property sells if qualified.
How long can I afford to absorb the additional cost and is it worth the convenience?
Should I sell at a discount to avoid the hassle of showings and the risk of not closing before my new house is ready to close?
National companies offer tons of convenience by purchasing your home at an extremely conservative market value. But be aware, they have much higher fees than a traditional REALTOR® when you add up all of the different fees and they deduct for repairs they may deem necessary AFTER you’ve agreed upon a price.
Our Agent’s Capital program, will also provide you with an “As-Is” price, along with the estimated costs for repairs BEFORE you sign. Then you can choose whether you want to keep the renovation equity for yourself or opt to have Agent’s Capital buy the property at its current “As-Is” Value. This price is usually comparable to or better than the final price national “bulk-purchase” companies pay once repair deductions are made, but you get to see it up front.
What will I do with the Equity from the sale of my property?
Will I pay off consumer debt?
Will I use my Equity as a downpayment on a new home?
Will I rent and wait for a “Buyer’s Market” to purchase a new home?