Is it Time to Move?
Assessing the Market: Reasons to Sell and Making the Decision
People sell their homes because they have been transferred to a new job, a new location, or because they are trading up to accommodate a growing family, or trading down when children move out on their own. Whatever the reason, there are at least a few facts worth remembering if you are thinking about selling your home.
Familiarize yourself with the market
Sellers need to understand the current real estate market, because housing is a commodity, and the value of real estate properties fluctuates according to many factors including supply/demand, interest rates, and the general economy. Your home is worth only what a qualified buyer is willing to pay for it at the time it is put up for sale.
A professional real estate agent can educate you about what homes in your area are selling for at the current time.
Learn what your property is worth
Sellers should consider a professionally prepared comparative market analysis (CMA), which allows them to see what similar properties, in the same market, already have sold for in the recent past. Your REALTOR® will be able to help you with this process and may provide you with a CMA.
For example, if you live in a ranch-style home, make sure your CMA tracks the price of other, similar ranch-style homes. If you live in a rural community, make sure your property is compared to properties that also have been sold in a rural community.
While it may seem logical to compare the asking price of others who are selling their homes, it is the closing price - the price actually paid to the seller - that ultimately determines relative worth in the real estate market.
Make the decision
People who must move to relocate for a new job don't have the luxury of asking, "Why should I put my home on the market when I haven't yet found the property I want to purchase?" They know they must move and so they do. In fact, it is very rare that a seller fails to find a suitable new property once an active and committed search is underway.
Selling one's current property is the most common way to finance the purchase of a new property. You won't know what you can afford to buy, if you don't know what price you can expect to get for your current home.
Sellers who don't want to list their property first risk finding the home of their dreams, only to realize another buyer (with financing and flexibility) has stepped in to make the purchase ahead of them. If you are reluctant to put your current property up for sale, perhaps you have not made the decision to move just yet.
Call Peter Thompson, 978-844-0188, for a Free Market Evaluation and Help with Your Decision.
