Selling your home or condo can be a daunting task for even the best business professionals. Worse yet, most homeowners that are selling, have had little experience in the past, making maximum success difficult unless they are being represented by a seasoned real estate professional.
The sale of a home can have a significant impact on more than just the proceeds realized at closing. Every home seller should also give consideration to other important implications of the sale. For example, “what is the emotional impact associated with the sale?” And, “Are there other financial considerations, such as lost opportunity costs, or carrying costs?” If a home seller neglects to consider the full impact associated with the sale, the end result can be costly and disappointing. The questions listed below should also be answered before a decision is made regarding the sale of a home, either now or in the future.
- “What would it mean to me emotionally, if I were to sell today?”
- “Will keeping the home negatively impact the quality of my life?”
- “What are the carrying costs associated with keeping the property, including mortgage payments, taxes, insurance, dues, maintenance and even the need for repairs?” All possible costs should be taken into consideration when calculating the net gain or loss associated with holding the property.
- “If I sell for a lower price, will I make it back in what I save by buying another home?”
- “If I sold today instead of later, how much could I earn if I were to invest the net proceeds?”
- “Does it matter if the property doesn’t appreciate, or loses value if I wait to sell?”
- “Will I care if something happens that makes it more difficult to sell, or if I’m stuck with home for a long period of time?”
- “Will the timing for selling be as good if I wait until later to sell?”
The answers to the questions above will help home sellers recognize the full impact of waiting until later to sell, versus selling today.