Steps You Must Take Before You Sell Your Home
Essential Home Selling Preparations
There are some important steps that you should take before you put your house on the market – all steps that protect your interests and help you get the most return from your investment.
- Get Pre-Approved for a Home Loan
There are sellers who signed a contract to sell their house before they knew if they were qualified to buy another. Either their financial circumstances had changed since their last purchase, and they could no longer qualify for a loan, or they weren’t able to sell at a price that allowed them to buy the type of replacement house they wanted. They ended up renting or buying something that was far from ideal.Before you decide to sell the house, get pre-approved by a lender you rust and research the housing market in the area where you wish to live so that you have a good idea how much it will take to buy a replacement.
- Check Your Mortgage Payoff
Call your lender to check the payoff for your current home mortgage. You’ll need the figure to complete step 6.
- Determine How Much the House is Worth
Determine your home’s fair market value. Agents will usually provide a market analysis as a courtesy, but you should take it a step further and order a formal appraisal.
- Estimate Your Costs to Sell
-Real estate commission if you use an agency to sell.
-Advertising costs, signs, other fees if you plan to sell by owner.
-Attorney, closing agent and other professional fees.
-Conveyance tax for the sale.
-Prorated costs for your share of annual expenses such as property taxes, sewer and water adjustments, fire district taxes and assessments if applicable.
-Any other fees typically paid by the seller in your area (surveys, inspections, etc.)Kelsey Law, LLC deals with real estate transactions every day and can give you a very close estimate of these costs.
- Determine your Costs to Acquire a New Home
Total your costs to acquire a new home: moving expenses, loan costs, downpayment, buyers’ title work and policy, paying for a new hazard insurance policy – all expenses related to buying which lender should give you a disclosure of estimated costs when you apply for pre-approval.
- Calculate Your Estimated Proceeds
-Deduct your mortgage payoff from your home’s fair market value.
-Deduct your costs to sell from the remainder to get an estimate of the proceeds you will receive.
-Will your closing proceeds cover your costs to acquire a new home? If not, do you have cash to make up the difference?
- Make Necessary Repairs
-Make all needed repairs unless you want the house to be regarded as a fixer-upper. I do not mean updates, but to items in need of repair. Anything that is obviously broken gives potential buyers a lower offer.
-It is suggested that you consider obtaining a home inspection prior to selling your property.
- Get the House Ready to Show.
Most houses need at least a little spiffing up before they are shown to potential buyers. Suggestions are to paint indoors (and sometimes out), organized closets and cabinets, sparkling clean windows and clutter-free atmosphere are essential if you want the house to appeal to buyers.
- Get Psyched Up to Let People In
If you’re listing with a real estate agent, she’ll no doubt ask you to leave when the house is shown – lurking sellers make buyers nervous. They don’t feel comfortable inspecting the house when they feel like they are intruding. Unless there’s a real reason for it, don’t ask your agent to be present for all showings. Other agents want privacy with their buyers. Make the house accessible. That means it is always ready to show. Many agents won’t bother if it takes 24 hours to get into.
- Contact Kelsey Law, LLC.