At some point in every homeowner’s mind, the question comes up – should I sell my home? This is usually followed by some confused thinking about not knowing where to start or what your house may even be worth in this current pandemic market.
DomiDocs recommends these 6 questions to ask before you sell your house.
Why do you want to sell your home?
On average, American homeowners move every five to seven years. Why? Sometimes the decision to move can be as simple as having outgrown your starter residence or being able to now afford a more expensive home, while other times selling your home can involve more complicated factors such as changes in personal relationships. Before committing to entering the sale process, ask yourself:
- Is the current market the best time to sell?
- Do the pros of selling outweigh the cons?
- If the goal of selling is to raise money for another venture, is there another way to do so?
The Five-Year Rule. Do you plan on living in your new home, possibly in a new city, permanently? As a general rule of thumb, financial experts encourage new homeowners to keep their new properties for at least 5 years before considering selling. Why? It’s based on profit/loss, appreciation of your home’s value, and the overall recouping of your investment during those initial years of homeownership.
What is the timeline for selling your home?
Are you selling your home out of desire or are you relocating to start a new career next month in another state? The timeline for selling your home may allow you some space to watch the ever-changing housing market and see how it plays out over time. If you’re flexible in selling your single-family home, a report by ATTOM Data Solutions shows that certain times of the year may put more money in your pocket:
- May, June, and July respectively yield the highest seller premiums
- October and December produce the lowest profits for sellers
Do you need to prep your house for sale?
YES- now’s the time to get with it. How much work does your house need before you can list it for sale? According to Remodeling Magazine, garage door replacement at an average cost of $3,695 nets a return on investment rate of 94.5%, while a minor kitchen renovation costing $23,452 returned an average of 77.6%. If something in your home is broken, such as a furnace or glass panes in the window, fixing them won’t increase the value of your home, but it will make it possible to sell. As many states have disclosure rules, it’s vitally important to be upfront about any major problems within your home – you’ll either need to repair the concern or price your home below market value to compensate for any existing issues. Quick, inexpensive fixes around your home could include changing out lighting, flooring, fixtures, and/or painting. Buyers are always interested in having kitchen appliances included, and possibly even some furniture items, so you’ll need to decide what you’re willing to include in your home sale.
Pro Tip: The sale price of an average American home rises by 2.9% if the front door is painted black. Who knew?
What do I do with all this clutter?
We all know how stuff just seems to accumulate, and many times we begin to live among it and seemingly forget it’s there. But to any prospective homebuyers, all that clutter signals a few things: is there not enough storage in your home, and is your home that hard to keep clean? If you’ve got bigger or worn-down furnishings, you may want to consider a temporary storage unit. If you don’t want to clean your house yourself, consider hiring a professional cleaning service. You could also hire a professional stager who can make your home look brighter and larger.
How do I choose a real estate agent?
Take the time to find a real estate agent you click with and don’t be afraid to check with at least 3 knowledgeable professionals in your area before choosing. Remember, a great real estate agent will make the entire home selling process seem easy, so if you’re not getting that vibe, maybe you should consider another agent. Ask for information on comparative homes that have sold, as well as to what they’ll do to market your home, especially in today’s fluid pandemic market. Will your agent offer a photo gallery backed up by additional video previews, virtual showings, and/or 3D tours? See: What You Need to Know About Realtor Safety During COVID-19.
How do I price my home to sell?
When it comes to pricing your home, DomiDocs uses data and your uploaded property documents based on home improvements and market comparables to show an updated TrueValueIndex® of what your home is currently worth, so you’ll already have an idea before connecting with an agent. Examine the market analyses and see where your home fits in – how many competitive homes are on the market in your neighborhood? How long have they been for sale? Overpricing your home is a common mistake that can result in a lengthy sale process or no sale at all. The Sellers Bundle feature of DomiDocs ensures you can easily access your important homeownership documents such as appraisals, purchases and upgrades, inspections, permit history, site surveys, and more. Ask your real estate agent for net profit numbers showing both the ultimate possible sale outcome and the least desirable, so you’ll be prepared for the worst while hoping for the best.
DomiDocs offers a user-friendly online platform for anyone involved in the exciting homeownership journey. Besides knowing the True Value Index® of your home at any given moment, you’ll also get alerts for scheduled maintenance, while having peace of mind in knowing your vital documents are safe and secure. Remember: October is Cybersecurity Awareness Month
Author – Connie Motz