To Sell or Not to Sell
The opportunity that sellers have today is unprecedented. Last year was a hot sellers’ market. This year, inventory is even lower, and that means an even bigger opportunity for sellers!
But sellers are also asking: “What does that mean when we go to purchase our next home?” Even though finding your next home in a market with low inventory is not without challenges, homeowners must consider if that concern is worth passing on some of the best conditions sellers have ever seen.
It pays to do some research. Here are some steps homeowners can take to help them determine if selling now is right for them.
- Determine if your move is necessary. Perhaps you need more space, less space, or wish to move out of the area. Usually, there is a motivation that initiates the idea to sell. It may be that you want to take advantage of the equity built in your home while the market is strong.
- If you are seriously considering a move, contact your realtor for a market evaluation of your property. Find out what your home could be listed for in today’s market.
- Work with your real estate agent to determine what your estimated net earnings on your home would be if you sell. Keep in mind that there are commission fees, title company/escrow fees, and usually home preparation expenses. In today’s market, many sellers provide inspections upfront and have the home staged. Take all of these costs into account with the help of your agent. Your agent can even request that an estimated net sheet be provided for you by a title company (in California, title and escrow are provided by the same company).
- Knowing what amount you can potentially earn on your sale, the next step is to get pre-qualified by a lender to determine just how much house you can afford as a buyer. If you do not have a lender, ask your real estate agent for contacts. Note that it can pay to shop for loans once you get serious about the purchasing process. Some fortunate folks even learn that they have enough equity not to require a loan in their next purchase!
Armed with the estimated amount you will earn by selling and the amount you can afford to purchase, you can now make an informed decision if now is the best time for you to sell.
Spring and summer are historically popular times to sell. Homes look their best, the weather is better, and buyers often want to move prior to school staring in the fall. Another impetus of selling sooner rather than later are interest rates. They have been on the rise and though still nowhere near historic highs, they are expected to continue to climb. Buyers know this as well and are eager to purchase before rates potentially make buying unaffordable for them.
If you are considering selling your home, take the first step and reach out to your real estate agent to get the conversation going. At the very least you’ll discover just where you and your property stand in the real estate market.
Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 18 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com
