Selling your house right now is stressful enough. But knowing when to sell your house in an era of social distancing can be nerve-racking.
Real estate experts warn that many sellers, particularly those in a hurry to close a deal may go home with lemons if they're not careful. They say when you choose to sell your house has a huge impact on how fast you sell and how much money you make.
You don't want to make your financial situation worse by making decisions based on the heat of the moment. You could end up losing thousands of dollars, money that could be used to get your financial life in order.
We want you to make the right choice financially. So in this blog post, we share five tips to help you determine when to sell your home when you're struggling financially.
You Can't Afford It
One of the most common realities of homeownership today is the likelihood to become house poor. This describes a situation where one lives in a home that takes a significant portion of their finances leaving very little or nothing at all to spend on other necessities.
Many factors can contribute to this state. Perhaps you lost your job, your lifestyle changed or you took too much debt to pay medical bills. If you're in such a situation, it may force you to sell your house. But before doing so, it is wise to talk to a financial advisor.
You Know Your Equity
Your equity refers to the value of your home after deducting any home loans. For example, if your house is worth $300,000 and your mortgage balance is $260,000, you'd have $40,000 in equity.
When your selling price is sufficient to clear your mortgage and other related costs, you wouldn't have to spend money out of pocket to finalize the deal. If that's the case, it may be a good time to put your house on the market.
You've Studied The Market
You'll want to list your house when there are many buyers in the market. Studies show that most homes listed in spring and summer are more likely to sell faster than those listed in winter.
Sunnier days make house hunting easier. Also, most homes tend to have lush landscapes thanks to blossoming flowers. Many buyers, therefore, begin their searches during these times of the year. If you put your house for sale, you increase your chances of getting great offers.
But as you do that keep in mind that other sellers in your area might have the same idea. So you'll want to get creative to beat the competition. This brings us to our next tip:
You've Made Minor Improvements
Experts advise homeowners to wrap up any unfinished remodeling projects before listing their property. Small improvements such as repainting commonly used spaces can be worth your while.
Apart from increasing the value of your home, it can help you outshine competitions in your area. Many buyers are interested in homes that need fewer upgrades or improvements.
You Have Plan For What Comes Next
Even before selling your house, you must plan for what comes next. Where will you live? Do you have enough money to help you move?
The last thing you want is to sell your house and end up in a more difficult situation financially. While planning, make sure you include all costs associated with the change.
Selling your house right now can be challenging, but doable. Regardless of what you're going through financially, make sure you pick the right moment to list your house to get the best offers and you have a solid plan of what comes next.