There are many reasons people decide to sell their homes, and it can often be a very emotional process, especially if you’ve been in a home for years, raised kids in it, etc. That’s why we’ve put together a list of some of the considerations to make when trying to make this big decision. Of course, the market is a factor to take into account, but here we want to address some of the issues that are a little less black and white.
1. Do I have enough equity in my home?
Typically, you’ll want to have enough equity in your home to cover all of the costs of putting it on the market and making the sale. Your equity is the part of your house that you truly own, so to figure out what this amount is, you’ll want to subtract your loan balance from the market price.
2. Should I make repairs?
When selling your home, you will need to disclose any structural issues the house might have, and this means any repairs that the buyer may need to undertake in the subsequent ten years or so. You will also have to adjust the asking price based on these issues, which means getting an appraiser to estimate the cost of each repair and adjusting the asking price accordingly. Depending on the market you’re in, you may decide that some repairs are worth making while others are not. For instance, refinishing a basement in Portland, OR, can significantly increase the value of your home, whereas the same upgrade in the Atlanta area will not.
3. Too Much Space?
It can be hard to let go of a home that you’ve truly made your own, and where you’ve made so many memories. However, especially if you’ve raised kids who’ve left the nest, it may be time to move to a cozier place that meets your needs, rather than an entire family’s. This is a new chapter in your life, and it’s time to think about the person you’re becoming, and the space you need!