The market is pretty hot right now, especially for home owners. If you live in a desirable neighborhood, you might have already had a few realtors knock on your door and express interest in working with you in the off chance that you decide to sell your home. As you watch the home prices in the area continually go up, you start to consider making a move closer to your job. Not only would it put you closer to the kids’ school, you could finally get a house with a pool like you’ve always wanted!
While there are some fantastic reasons to sell your home, there are a lot of things you should consider other than the rising home values.
Is your home ready to go on the market?
Nine out of 10 homeowners have no idea about the true condition of their property when they decide to list it for sale. It’s important to be aware of the things that you can’t see at a glance – foundation issues, potential HVAC repairs, loose shingles, and outdated electrical wiring can be costly repairs. Just as important are things that potential buyers will instantly see – cluttered interiors, overgrown landscaping, bold paint colors, visible drywall cracks, outdated or out of service appliances. These items will scare away potential offers so it’s crucial to put your home’s best foot forward.
Do you know the difference between a high offer and a good offer?
With limited inventory, well-priced homes will often receive multiple offers. But it is imperative to know the difference in the quality of offers. Higher does not always mean better. There are many factors to consider when looking at a home offer. Does the buyer have a pre-approval letter? How long is the buyer’s due diligence period? How much earnest money are they putting down? Are there any contingencies on their offer? These are all things that you need to weigh very heavily, in addition to the price they are willing to pay.
Are you ready to move once you have a buyer?
The process of listing your home, getting an offering, and going into a binding contract can happen very quickly in this market. You need to be prepared to have a new place to go once the offer comes. Whether you find temporary housing while you search for your new home or you purchase before you close on your existing property, delays in move out can cause a chain reaction that can be catastrophic. If your buyer is also selling their home at the same time they are purchasing yours, a single day delay can cause all the buyers and sellers involved in the connecting transactions to delay their moves and that is very hard to accommodate.
Are you ready to be a buyer in this competitive market?
So far, you’ve had the upper hand by being a seller where the inventory is low. Now you will have to ready yourself for the reverse. Once your home sells, you will be on the other side of the transaction. Looking at the limited number of homes available and competing to put in the best offer means that you will have to be prepared to make tough decisions when it comes to your home wish list and move fast when you find a home you like.
Can you afford the house you want?
If you are planning on moving into a larger home or a better neighborhood, expect to see an increase in price. Just as the values in your area have increased, you will see property values increase elsewhere, too. It’s important that you budget accordingly as home prices are still on the rise. The longer you wait to sell your home, the higher the price tag for your new home will be.
Whether or not you are selling your home because of the current state of the housing market, it is important to have a plan going in. Being prepared for all the variables, having a great agent by your side, and being ready with alternative housing accommodations will make the entire process much easier when you do get a great offer.