A hot real estate market can be very exciting for homeowners new and seasoned, especially if you’re thinking of selling your home. The thought of having more buyers than homes listed is incentive enough for most to sell with the hope of receiving an optimal offer for your home. However, you should take a few things into consideration before jumping to the front lawn to hammer in that for sale sign. These 5 things specifically should be thought through before you make the final decision to list your home for financial gain.
Where will you live after you’ve sold your home?
Remember the mouth-watering idea of having buyers fighting for your home, driving up your home’s selling price? It’s true that if you decide to sell your home when the market is thriving, you’ll likely receive an offer higher than the market value of your home – which is great – until you realise that you must look for a home in a market that has more buyers than listings… Which isn’t the best case scenario when you’re the buyer on the flip side of the deal. Make sure to research which listed homes may be right for you and what price ranges are available before taking the next step towards selling for a quick profit. You don’t want to be couch surfing for months on end before you find a new home that suits you.
Get Pre-Approved Before Selling!
Maybe it’s time to move to a larger home for your growing family, you want a home big enough to comfortably entertain, or you want to cut your commute time in half; Regardless of why you’re looking to sell, as home prices are inflated, you’ll want to take a look at whether you can afford to buy a home which costs more than your current home or what you’ll find for the same price of the home you’re selling as it might be less than you’re hoping for. It’s also very important to get pre-approved for a mortgage ahead of signing on the dotted line, as homes sell so fast and are selling with firm offers without conditions. Doing so will save you time and stress knowing which houses you can afford ahead of time so you can be confident when making an offer before someone else does.
Do You Need to Spend To Make Your Home Market Ready
So, you’ve decided to capitalise on the hot housing market. Great!… but what about the leaky roof you’ve been putting off? Preparing your home to be market ready can come with many unforeseen costs like expensive renos, lost time in wages from putting in extra hours to make sure your house is ready, realtor commissions, land transfer fees, lawyer fees etc. When selling your home there’s more to it than a for sale sign. Make sure you’re prepared to put the time in and know the value of what needs to be done, to make sure you’re getting that money out, along with a nice profit margin to boot.
Timing is Everything!
Even if the housing market is outrageously hot, you should consider if it’s the right time for you to sell. Spring is generally the best time to sell a home, however with the late mortgage rule changes, the market could also drop faster than you had originally thought. With the nice weather on the way, your house will show better and more buyers will attend your open houses once the sun comes out too. Another thing that is often overlooked is considering waiting if you’re in a peak season during work, or for the school year to be over before relocating your kids as an upheaval mid-semester could do more damage than you might think.
Understand Current Tax Laws
Hearing the word taxes can send shivers down the backs of home owners, but whether we like it or not they are there and always will be. If you’re selling, it is important to know how the current tax system works so you don’t pay more than you must in taxes, as when you do sell, the profit made might be seen as income and therefore will affect the amount you’ll owe next year come tax season.
Although the idea of selling your home for a high price in today’s hot real estate market is appealing, considering all the pros and cons before making a final decision is a must. If you’re thinking of selling your home or if you would like to learn more about how you could take financial advantage of the current home you own – Feel free to give me a call at 705-315-0516. I am always happy to help you better understand your mortgage options when deciding what makes the most financial sense for you and your family.