Have you been tossing and turning at night wrestling with the decision to sell your home? When is the right time to sell? Am I going to regret not selling my home now? Will the housing market slip back towards favoring buyers? Deciding to sell your home can be a serious decision but don't be discouraged; keep these points in mind and you will be on the right track to making a good decision about whether to sell your home.
Put simply, equity is how much of your home you actually own. It is a funny thing to think about but mortgages, liens, home equity loans etc... all mean that something other than you (usually a bank) have an ownership interest in your home. If you sell, all of these mortgages and liens need to be paid before you. Getting a comparative market analysis from a real estate agent gives you an idea of the value of your home in the current market. Then you can calculate how much equity remains in your house for you to take away.
Equity is not Net
Unfortunately, your net profit from the sale of your home is not, simply put, net = sale price - mortgage. Just to list a few of the often overlooked expenses for which sellers are responsible: Attorney's fees, broker's fees, title V septic inspections, and sales tax stamps all subtract from the overall proceeds of the sale.
Trends in the Market
Everyone loves to predict the future so why should prospective sellers be any different? Familiarizing yourself with the local market data as well as talking to a real estate agent about comparing your home to others in the area (comparative market analysis) will help you decide if now is a good time for you to sell.
One factor that should never be overlooked is simple reality. When you (you have time) to sit down and rationally evaluate your current life situation, often the decision to sell or stay becomes more clear. Are you expecting triplets and the one bedroom condominium suddenly seems like a closet? Selling and upgrading is probably the right decision regardless of how much of the mortgage is paid off. Are you tired of that old drab kitchen? Perhaps new cabinets and fresh paint is all you need.
As always please contact us with any questions and put three decades of experience and two generations of tradition in your corner.