Consider your
motivations for
selling to help
determine if you
are really ready
to part with
your current
home.
Are you ready to
leave your
current home?
Moving is a
tiring and
stressful
experience and
leaving your
home can be
emotionally
difficult as
well -
especially if
you've lived
there for an
extended period.
Make sure you're
really ready to
go before you
place the
property on the
market.
Moving Up
Probably the
most common
reason for
selling a home
is the need for
more space or
the desire to
move up to more
luxurious
property. Many
homeowners find
that increased
income - coupled
with the
appreciation in
their current
houses - makes
moving up a
feasible option.
This strategy
has also proven
to be a
successful
long-term wealth
builder as
housing prices
have generally
continued to
rise over time.
Financial and
Tax Implications
of Selling
A home is a
major
investment, and
the decision to
sell is one with
major financial
implications. Is
now a good time
to sell? Is it a
good time to buy
another home?
Have you
considered the
tax consequences
of the sale?
Selling for
Financial
Reasons
Many people sell
for financial
reasons. A
reduction in
income, added
expenses (such
as college
tuitions), and
the need to save
or invest more
to meet goals
are common
reasons for
moving to a
smaller home.
Remodeling vs.
Selling
Even if you want
more space or
more luxurious
appointments,
there is an
option to
selling - you
can remodel your
existing house.
Consider our
remodeling
checklist to
help determine
if this is your
best option.
Selling for
Retirees
Retirement is a
great time to
sell the old
family home and
purchase
something
smaller and more
convenient. For
many people,
home equity is a
major portion of
total savings
and net worth.
Reinvested home
equity can be a
major
contributor to a
post-retirement
budget - and
help support an
active and
enjoyable
lifestyle.
Sell First or
Buy First?
This is one of
the biggest
questions faced
by homeowners -
and it's not an
easy one to
answer. Review
our tips for
determining
which is best
for you.
Rent Out Your
Old Home Instead
of Selling?
If you're moving
but are
reluctant to
sell your old
home you may
have another
option -
renting. By
renting you may
be able to
sustain the
costs of both
your old and new
houses. Being a
landlord is no
picnic, however.
Check out our
rental guide to
get an idea of
what is
involved.
Market
conditions will
have a major
impact on your
selling
experience.
Understanding
what is
happening in the
marketplace can
help you plan
and execute a
realistic plan
to sell your
home.
Gauge market
Conditions
Real estate
markets are
highly cyclical.
The current
status of the
market can have
a significant
effect on your
home selling
strategy and the
results you are
likely to see
from your
marketing
effort. Try to
develop an
understanding of
the state of the
market so you
have some idea
of what to
expect - and a
feel for how
hard you can
bargain when
negotiating with
buyers.
What's Best -
Hot or Cold
Market?
Unless you're
planning to rent
you will
probably be
buying a new
home at the same
time as you are
selling your old
one, so it's not
always easy to
decide if a hot
market is
helpful or
harmful. As a
general rule, if
you are moving
up - looking for
a new home
significantly
more costly than
your old one -
you may want to
act during a
weak market,
when the savings
on an expensive
new property
will more than
outweigh the
losses on the
older one.
Conversely,
empty-nesters
looking to
switch to a
smaller home may
want to plan the
move during a
hot market, when
they can
maximize gains
on a larger home
to be sold.
When is the Best
Time to Sell?
There are two
primary selling
seasons - spring
and fall. Spring
is the strongest
since many
shoppers want to
buy and move in
before school
begins. Summer
and winter are
generally very
slow in most
markets. Some
areas have their
own seasonality,
however. If, for
example, you are
selling a home
in a seaside
vacation spot,
summer is
probably a great
time to be on
the market.
Understanding
Area Sales
Don't listen to
anecdotes and
stories about
bidding wars and
houses getting
snapped up in
one day. There
is no substitute
for hard data
when you are
considering
selling your
home. Check out
actual sale and
closing prices
of homes in the
area and try to
develop a feel
for the true
state of the
market.
.
Pricing is
only one factor
to consider when
reviewing an
offer on your
home. It's
important to
consider the
entire offer -
with all of its
terms and
conditions -
when making a
decision.
Consider these
areas when
evaluating any
offers you
receive from
interested
purchasers.
Price
Obviously, price
is a major
consideration.
How close is the
offer to your
asking price? Is
the market
strong - do you
have a good
chance of
getting more if
you stay on the
market?
Contingencies
Virtually all
home purchase
contracts have
some
contingencies -
and many of
these are
extremely
reasonable. But
it's important
to consider the
potential of
these conditions
to affect or
terminate the
transaction. It
may be advisable
to accept a
lower price with
few
contingencies
over a higher
figure with a
large list of
conditions.
Pre-Qualified
Buyers
Buyers who are
pre-approved for
mortgage
financing are
among the
strongest
purchasers. Not
only do these
buyers already
have funding in
place - they are
also most likely
among the most
credit-worthy
buyers.
Beware the Home
Sale Contingency
Offers are
sometimes
conditioned upon
the sale of the
buyer's current
home prior to
the closing.
This is an
extremely
onerous
condition. You
simply trade the
risk of selling
one home to
selling a
different one -
and you have far
less control
over the buyer's
house.
Seller
Financing
Some offers are
contingent upon
the seller
taking back
financing. The
exact terms can
vary
considerably,
however it is
usually not
advisable to
accept this type
of deal unless
there are no
alternatives.
Apart from the
fact that most
sellers want to
cash out to buy
a new home,
holding a
mortgage can be
risky, involving
costly legal
enforcement
actions if the
borrower
defaults. With
the number of
mortgage
programs
available from
lenders, a buyer
who demands
financing from
the seller is
probably a
high-risk
borrower.
What Does the
Buyer Want You
to Do?
Few homes are in
perfect
condition, yet a
buyer may expect
to receive yours
in pristine
form. A
purchaser who
expects to buy a
50-year-old
house in
flawless
condition is
unrealistic -
and could turn
out to be a
problem. While
you should
expect to repair
any major
problems, beware
of a buyer who
seems excessive
in his or her
demands.
Handling
Multiple Offers
If you are
fortunate enough
to receive
multiple offers
make sure to
review each one
carefully. If
one party is
significantly
stronger than
the other(s) or
one offer has
fewer conditions
you may want to
try work with
that buyer
first. After
reviewing the
terms of the
offers - and
discussing them
with your agent
- you can submit
a counter-offer
to all of the
parties.
Counter-Offers
and Negotiation
Negotiation is
very common in
the real estate
markets. When
you receive an
offer for less
than the asking
price you have
three choices -
accept it,
reject it out of
hand, or make a
counter-offer.
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