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 of the market can also play a role. According to National Association of Realtors, home sales peak in summer across the country.
It is also important to understand how current trends such as interest rates, home sales, and appreciation of home prices might affect your goals and timeline. Check out our tips to sell your house quickly.
- Do I need to make repairs?
Sellers will be required to disclose to potential buyers any issues that may exist with their home. While you are not required to make repairs to your home, you will need to price it based on the cost of repairs. You may also need to offer a concession for the buyer to allow them to do the repairs. Buyers looking to buy a move-in-ready home can find it difficult to sell if they have to pay for costly repairs, such as replacing an HVAC system or fixing a swimming pool.
Selling House has the advantage of handling any repairs, allowing you to move forward with your life. We look for items that the next buyer will want to fix. These items can have a negative impact on the safety, structure, or functionality of your home. These most common repairs are what our estimators found.
It can be tempting to make large home renovations before selling. However, not all projects will increase your home’s value. The impact of a home renovation or upgrade will vary depending on where you live and what your home is worth.
Based on our home improvements value calculator data, a basement finished in Portland is five times more valuable than one that has been completed in Atlanta. This represents a roughly 13% increase in the median home value, which is 2.5% respectively.
Some projects, such as adding a pool or wood flooring, tend to increase in price for homes with higher values, while smaller projects, like kitchen remodeling or adding a full bath, tend to be more affordable.
HOME IMPROVEMENT CALCULATOR
Selling House Data provides data from thousands of homes that have been sold in your local area. This allows you to determine how your home can be improved, renovated, or remodelled to increase its value.
- What should I do to sell my house?
Traditional selling a house is not an easy task. This involves preparation of your home, working with an agent and making repairs and improvements. It also includes negotiating with potential buyers. It is not certain when or if you will receive a fair offer.
There are many ways to sell your home. Consider how much time, energy, and resources you have available to help you decide if your home is ready for sale. Are you able to show and prepare your home? Do you have the ability to make repairs and improvements if necessary? What length of time are you willing and able to wait to receive an offer?
A real estate agent can help you navigate the traditional selling process. A real estate agent can help you market your home, coordinate with buyers agent, and manage paperwork. Our guide will help you choose the best real estate agent .
What is the cost of real estate agent commissions?
Sellers are responsible for paying the commission split between the listing agent (and the buyer’s agent). Real estate agents have different commission rates, which can be negotiable. Forbes states that the average commission cost for real estate agents is between 5 and 6 percent of the sales price. This means that if your home is sold for $200,000, you would pay $10,000 in commissions.
Find out how selling to Opendoor is different from traditional sales.
There are many other options than the traditional model. For example, selling directly to an iBuyer. Selling House, for example, can offer a all-cash, competitive offer to your home in less than 48 hours. We charge a transaction fee that is similar to traditional real estate agent commissions. This allows you to move quickly and without having to worry about listing. Find out more about pricing, the homes we purchase and where they are sold.
If you are buying and selling simultaneously, trading in is an option. This allows you to combine the sale of your existing home and the purchase of your next house in one easy process. It also eliminates housing overlap costs.
- Although life events such as a family milestone or a new position can motivate you to sell your house, there are many other factors that will impact the final decision. Knowing your financial situation, your timeline and how you plan to sell your house can help you decide if you are ready to sell. To estimate the value of your home, use our home valuation tool.
- It is a good idea to determine how much equity you have and whether the proceeds from a sale will cover the total costs for selling , moving and possibly putting down a down payment. To estimate your costs and net proceeds, use our home sales calculator.
- You may also need to consider timing when selling your home. The average Days On Market of similar homes in your neighborhood can give you a clue as to how long it will take. It is important to consider the effect of market trends upon your home’s value and goals.
- There are many methods to sell a house. Each has its own advantages. Comparing the benefits and costs of traditional selling with alternative options like selling to an IBuyer. A plan is a sign that you are ready to begin the process.