Selling your home can be a challenge but if there isn’t pressure to sell, you can wait for the ideal offer and price you want. Take into consideration your career, family, school, any medical concerns or financial pressures.
• What will a new home offer me?
• Does the house need any repair?
• Do I have enough equity?
• See family more often or less
• Priorities or interests have changed
• Want a fresh start or a change
• Empty nest
• Change in relationship
• Death in the family
• Home is too small
• Made a mistake
• The neighborhood has changed
• Moving up in the world
• Deferred maintenance
• Cash in equity
• New job or promotion
• A job transfer or relocation
It’s a good idea to carefully evaluate your finances and how much leverage you have before you jump into listing your home. Some of this you may have on hand and the rest you can collect as you go through the process.
• Original sales contract for your house
• Property survey
• Certificate of occupancy
• Mortgage and financing documents
• Tax records: real estate, school, etc.
• A professional appraisal from home purchase
• Homeowners’ insurance documentation
• Home inspections report
• Receipts for improvements, upgrades, etc.
• Maintenance & repair records
• Manuals and warranty information
• HOA Documentation (if applicable)
• Builder contract (if applicable)
One is to simply hire a professional appraiser, who will examine all the data on recent nearby sales and factors in your home’s size, features, age, condition, location and other traits to provide an unbiased estimate.
Another way is to ask a real estate agent for a comparative market analysis (CMA), which is a detailed report on recently sold homes in your neighborhood. The information in a CMA will help guide you to a competitive asking price. If you’re willing to put in a little time and do the research yourself, you can conduct your comparative market analysis.
Once you have an estimate, review your most recent mortgage statement for the balance on your home loan and subtract that amount from what you think your house is worth. If your home is worth approximately $265,000 and you owe $135,000 to your mortgage lender, you have $130,000 of equity.
DETERMINE NET EQUITY
Your next step is to figure out your net equity, which is your total equity minus the expenses you expect to pay as you move through the selling process.