Spring is officially here - at least according to our calendars...
It's that magical time of year when homeowners everywhere start to get that itch. How much is my place worth? Is it time to sell? Should I wait?
Is the news true?! Are buyers really begging you to take their money?!!
If you find yourself in this boat, take a deep breath, and read on. It's not as mysterious or treachorous as you may think. Follow these 4 steps and you'll know what to do:
- Contact a REALTOR
- Get Specific
- Comparative Market Analysis
- Weigh Your Options
Contact A REALTOR
Rather than mull over the possibilities without any cold hard facts. Pick up your phone and either call or email your REALTOR.
Don't have one? Check out our recent post on how to choose a real estate agent
When talking with your agent about your property, you want to get into the nitty gritty so that they can provide the most accurate estimate of your home's value. Is your roof on it's last leg? Do you have a major special assessment coming up? Is the HOA suing the developer? Recently renovate your kitchen? These are all important factors in assessing value. If it is a condo, tell your agent about any litigation, rental policies, and building issues. Also disclose any
Comparative Market Analysis
The Comparative Market Analysis (CMA) is a snapshot estimate of your home's current value. Your agent will compare similar, recently sold properties, to help give you a sense of what your home might sell for that day. Properties are compared based on close proximity to the property, similar layout (# of bedrooms), size, and condition. Some CMAs go as far as calculating value differences between mid-level and high-end kitchen renovations, rehabbed bathrooms vs original condition, and much more. Note: The CMA is not a guarantee of value but is one agent's opinion, based on facts. Results ay vary, depending on who you ask.
Weigh Your Options
You now know how much your home is likely worth but that may not answer whether or not you should sell yet. Your REALTOR, lender, or real estate attorney should all be able to help you compile your seller net sheet. How much do you still owe on your property? What closing costs , taxes, and fees do you need to include? After you've factored those figures in, you have your net aka your take-home.
Your agent can also shed some light on average market time and what to expect if you were to list right away.
If you are looking to move to a larger place, rates are favorable and pricing is stable. Both of those are steadily on the rise so if you can afford to sell and feel comfortable with type of properties available on the market, it may just be the right time. If your seller net sheet has you underwater and you aren't in a position to sell, you'll just need to wait another year and check-in with your agent then.
It is a great time to sell. In many downtown markets, inventory is down and homes that show well and are priced well are selling quickly and close to or above listing price. If you plan to move into a bigger place, take advantage of the rates and the ensuing buyer frenzy. Because inventory is low, it may take you longer than expected to find your next place so there is nothing wrong with starting to browse now.
Note: If you are going to sell, do it right! Trust your agent's advice and make the effort to have it staged so that is photographs and shows beautifully. That is the best way to ensure you are going to sell quickly and for the highest price.
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