When
is the Best Time to Sell Your Home?
Everyone seems to have specific ideas on when the right time
is to sell. Some base their theories on the overall economy,
while others will tell you that there are key buying months
that you'll want to capitalize on.
If you're not buying and selling strategically
or for investment, the best time to sell is really when you
feel your existing home will not meet your future needs. The
best reason to purchase a new home is to take advantage of
your family and lifestyle changes. Do you wish to be closer
to a school? Are you switching jobs? Do you have an aging
parent to care for?
Weather and holidays do play a factor.
Almost no one goes house hunting around Christmas, and few
give up their summer vacations. Of course, those with school-aged
children are less likely to move during the school year and
summer is an ideal time. In some areas, there is a definite
"spring cycle" -- perhaps it's a bit of spring fever
and a wish to break out of the bonds of winter.
Some gamblers look for winter bargains
and then try to sell their homes during the spring cycle.
But overall, that could be more tension and aggravation than
you wish. And the monetary results may be disappointing.
Another key factor to consider is the
economy. Are interest rates higher or lower in comparison
to your current mortgage? If they are higher, you may want
to stick with your current home, as your new mortgage payments
could be uncomfortable. If rates are lower, you might be able
to trade up to a more expensive home without a significant
increase in your monthly mortgage obligation.
What's more, if it's a buyers' market,
you may be in a strong position to purchase a new home, especially
if you have accumulated some equity in your current property.
Are There Costs
Involved in Selling?
Unfortunately, the answer is yes. Even if you think your home
is perfect, you may have to do some minor repairs or upgrades
to make your home more attractive to potential purchasers.
- A professional home inspection may
be a condition of the offer. If the inspection points to
problems, your purchaser may ask that you make the necessary
repairs or choose not to close the deal.
- Closing costs, such as lawyers' fees
or unpaid taxes, will also have to be paid.
- Mortgage discharge fees may be levied
by your lending institution.
- Sales commissions must be paid. They
usually amount to 6% of the selling price.
Buy or sell first?
That's tricky. After all, if you find a purchaser for your
existing home, before you've found a new one, you may find
yourself living out of a suitcase if convenient closing dates
can not be negotiated. On the other hand, if you find your
dream home before you've unloaded your old one, you may be
faced with carrying two mortgages for a time.
So how do you manage? Easy. Do your homework
and have a good idea about the neighborhood and type of home
you're looking for. Do an honest evaluation of your family's
needs and budget.
Speak to your Bluegrass Premier Realty agent and start
your new home search as soon as your existing home hits the
market.
If you've found a home, before you've
sold your existing one, use "sale of your existing home"
as a condition on your offer. If you don't sell your house
within a fixed period of time, you can choose not to go through
with the offer. This, however, is a difficult condition for
many vendors to agree upon and you may find that you have
to forgo your price negotiating power.
Purchasing a home before you sell could
be a risky strategy if you're counting on the proceeds from
the sale.
If you've found a purchaser before you've
found your next home, use "purchase of a new home"
as a condition when you sign back the agreement. Again, it
will only be for a fixed time. Even if you have not found
the ideal next house by the time the deal closes, you may
still wish to proceed with the offer. As a buyer with a "sold
house" you will be in a better position to negotiate
price.
What Dana Martin
Will Do for You
Complete a market analysis to determine a realistic asking
price. Make recommendations on making your home more "sellable."
Provide a professional marketing program. Advertise your home
on the Multiple Listings Service (MLS). Arrange showings.
Negotiate the best terms possible. |
