10 THINGS TO CONSIDER BEFORE SELLING YOUR HOUSE IN HOUSTON
If you are thinking about selling your house in Houston, there are some things you should think about prior to making that commitment. In this video and article, we will review everything you need to know so you can make the best decision for yourself. Let’s review!
The first thing you need to ask yourself is why are you moving? What is the driving factor behind your decision? The answer varies from person to person.
The most common reasons why someone may be selling their house to buy a new one is because they may be upsizing/upgrading, downsizing, changing school districts, job relocation, or moving closer to family and friends.
Knowing your ‘why’ will help you in the long run when things get tough. You can always revert back to your big why and think about the reward from your desired outcome when all is said and done.
So before you go any further, ask yourself why are you wanting to move to begin with? Write it down if you need to.
You know your finances better than anyone else. How much more monthly payment can you handle if you are upsizing? Are you using any portion of equity from your previous home to purchase a new one?
I want to make a quick statement here…just because you are pre-approved for X amount from a lender, doesn’t mean you have to spend that much.
Go with what you are comfortable with and stick to it.
Consider paying off any debt you have after you sell your current house to compensate for upsizing or to eliminate additional monthly payments to a creditor.
Does your house need repairs or any updates to be considered top value in today’s market? What type of condition do you think your house is in?
Act like a buyer and thoroughly walk through your house and take notes of any defects you see. Think about what you want to do before going on the market.
Should you make these repairs or updates to bring the property up to speed or are you willing to adjust the price accordingly?
If your house needs too much work and you are unwilling to make any repairs, consider selling at a discount to an investor and skip the traditional selling process all together.
Our team also purchases houses directly from sellers, so if this is an avenue you want to explore contact us.
As I mentioned above, you need to price your house accordingly. If your house is in dire need of repairs you have two options, make the repairs and updates prior to going on the market or adjust the price to compensate for the repairs.
The reason I say this is because buyers will nit-pick the house to death and back. If you don’t make any repairs, you need to show the buyer some value in why they should choose your house above all others that are for sale.
On the flip side, if your house is comparable to others in the neighborhood when it comes to condition and the price you expect, then you should be in good shape.
The Realtor you hire, whether it’s us or someone else, will be able to break all the data down with you and give you some guidance so you can make the best decision possible relative to your goals.
5. SELL TO AN INVESTOR OR TRADITIONAL ROUTE
We mentioned this a second ago. But we will break it down further in this section. Selling to an investor has it’s perks, but it also has some downfalls as well.
When you sell to an investor you are normally selling at a steep discount to make it worth their time. But you also don’t have to go through the traditional means of selling like making the repairs, preparing for showings, navigating the contract to close phase, etc.. It’s a quick and easy process but it comes at a price, or lack thereof I should say.
When clients approach us to purchase their house, we always do our best to create a win-win scenario for everyone involved.
So if this is something you want to explore, reach out to us directly and let’s see if we can make the numbers work for the both of us.
If selling at a discount to an investor is not an option for you, then we need to get your house in the best shape possible, comparable to those around you, so we can sell for top dollar.
This route is the traditional means of selling a house, so don’t expect to go under contract with a buyer and close right away. However, a little patience can pay off big later down the line.
Here is something that we see every now and then. Should you sell the house on your own without the professional help from an experienced agent or should you leverage it out and let your Realtor handle it?
This really depends on you. If you don’t know what you are doing, it could end up costing you thousands of dollars and you could potentially wind up in court.
71% of all real estate related lawsuits in the United States comes as a result of one party going unrepresented in the transaction. So if you are having thoughts of going alone, tread with extreme caution and make sure all of your legal documents are squared away so you are protected.
Another thing to consider if trying to sell on your own, is how you will handle showings during the work week and contract negotiations. There’s so much more than just price, so read and study the contracts thoroughly and fully understand any contingencies that may come along with an offer.
7. ESTABLISH YOUR TIMELINE
Do you know what kind of timeline you are on? Are you relocating for a job transfer in a few months from now? Or do you prefer to be settled in a new home prior to school starting up again?
Understand how much time you have and go from there. Don’t wait until the last minute to get things done. Real estate transactions take time and money. Be sure to check out the video we did covering how long it takes to sell a house in Houston.
8. HOW MUCH EQUITY DO YOU HAVE?
One thing to consider or at least understand, is how much equity you have in the home. Knowing this number gives you a reasonable idea of how much money you will receive back at closing. If you have $100k in equity, what will you do with the money? Will you use it to pay off any debt, put a large portion in savings or investments, or use some of it for a down payment on your next house?
Having the answers to these questions will help you when you start the house hunting journey.
Have you thought about leasing your house rather than selling it? If your dream was to become an investor one day, now is your chance!
Becoming a landlord has its pros and cons. It is a risk, but if your house will cash flow every month then you are making good money. Someone else is paying your mortgage and you get to keep a little extra after the bills are paid, leaving you the opportunity to pay down some existing debt.
Keep in mind though, you take on all this risk and maintenance cost. Be sure to do your research before you allow a stranger to live in your home.
10. WHAT TO EXPECT WHEN SELLING
Don’t expect a full price offer or any offer right away. How the market will accept your listing really all depends on the current market conditions.
We did a whole series on what to expect when selling your house, so be sure to watch those videos. We break every little detail down for you so you know exactly what to expect. You can check out part 1 here.
Well there you have it! 10 things you need to consider before selling your house. We hope this video and article were somewhat helpful to you and will further guide you in your decision making. If you want a more personable approach and a detailed plan moving forward, give our team a call or schedule an appointment here.
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