Consider your life circumstances and financial situation to determine whether you should sell your house. This includes your equity in the home, your ability afford a new home, as well as your finances. Understanding the local housing market will help you understand how seasonal trends could impact your goals.
Here are some questions you should ask if you’re asking “Should my house be sold?”
- What is the value of my home?
Real estate agents will compare similar homes that have recently sold in your area to estimate the value of your home. These homes are commonly referred to as “comps”. Comparing the sales prices of comparable homes can give you an idea of what price range potential home buyers may pay for your house.
You will need to take into account the number of bedrooms, bathrooms, square footage, and unique features when searching for similar homes. It’s difficult to adjust for every feature because no two homes will be exactly alike. Computers are very adept at this task. Our home value tool will give you an estimate based on the most recent market data for comparable houses. Looking to sell your house fast for cash? We beat the other guys’ offers read more
Request an estimate. It’s free and you don’t have to agree. Based on your information, market trends and data from hundreds, we value your home . You can also get help from local pricing experts to ensure you have the best of both.
- Are there enough equity in my home to allow me to sell it?
You will need to have enough equity to cover your mortgage, selling costs, and moving costs. People often wait to sell until they have enough equity for a down payment.
Recent data from Bankrate shows that most homeowners don’t have enough equity to cover closing costs, moving expenses, or buying a home. This is despite being in their homes for about five years.
What is home equity?
Home equity refers to the amount of your home you actually own. If you purchased your home with all your own money, you would have 100% equity. Most people borrow money to purchase a home. This means that they gradually build equity over time as they pay back the interest.
Calculating your home equity is as simple as subtracting the remaining loan balance from the value of your home. This will give you an estimate of your home’s equity. Here’s an example.
Selling House will help you find your home value. Your most recent mortgage statement will show you your loan balance.
It is possible to have Negative Equity in your home. This means that you owe more than the house can sell for. This is often called “underwater” in mortgage. Selling your home for a lower price than what you paid is a last resort.
Knowing how much equity you have can help you decide if your home should be sold. Once you know how much equity you have, you can calculate if the cost of selling your home will be covered by it.
- What is the cost of selling my house?
Many people focus on the 5-6% commissions that are typically paid to agents when selling a house. The total cost of selling your home could be closer to 10% of the sale price. These additional costs can include closing costs, closing costs and repair costs. If you’re not able to sell your home, there may be housing overlap costs. Don’t forget about the cost of your mental and physical health.
This is a quick snapshot of the costs associated with a $200,000 home.
*We used the 2018 national average for repair costs according to homeadvisor.com
**Includes the estimated cost of title, escrow and notary as well as the transfer tax
This in-depth guide to the cost of selling a house details each expense and how to budget for them. To estimate the cost of selling your house, you can use our property sale calculator. The calculator will take into account your remaining mortgage balance so that you can calculate how much you might make after the sale. This is often called your net proceeds.
If you are looking to buy a home, our guide will help you determine how much you can afford. The amount of debt you have to your income will determine the loan that you are eligible for. It is important to know how much you make each month and how much you pay down.
Many lenders will insist that your housing expenses are not greater than 28% of your gross monthly income and that your total debts not exceed 36%. This is often known as the 28/36 rule.
- What is the time frame for selling my house?
Consider your moving timeline to determine if it is time to sell. Also consider how your move could impact your goals. It can be costly to take longer than you expected to sell your home. This can cause you to miss a job or force you into temporary housing. Selling a home also means selling your house.
Days On Market (DOM) is one of the best indicators of the time it will take to sell your house. This real estate statistic tracks how long a property is on the market, from the time it is listed to the moment it is sold. realtor.com shows that the average DOM in all US markets was 83 days in February 2019. However, DOM can vary depending on market conditions and season. Take a look at the average DOM of similar homes in your neighborhood to get an idea of how long it takes for homes to sell.
We’ve previously covered factors that affect the time it takes for a home to sell, and the best time to sell . The length of a home’s stay on the market will depend on many factors beyond your control, such as how popular your neighborhood is and the number of homes available for sale. Also, seasonality …