10 Things to Consider When Selling Your House

Owning a house increases your chances of selling it one day. Rare are the people who spend their entire life in their first house. Selling a House It is usually easier to buy a house than sell one. Just because it's easier to sell a home than buy one, doesn't mean most people will do so properly.

Real estate agents are attracted to those who have the news that they're thinking of selling their house. They will come to you as hungry mosquitoes would to a person alone on a deserted island. When you sell your house, you may find that the IRS or state tax authorities are waiting to try to steal a portion of your profit, especially if they don't know how to use tax laws to their advantage before you sell.

You will learn some of the important things you need to consider before selling your house.

Why are you selling?

Start with the basics. Consider whether you have good reasons to sell if you are considering selling. Who wouldn't want to live in a bigger home with more creature comforts and amenities? If you put your house on the market to buy a larger one, it could be a mistake. You may find yourself in financial ruin if we buy houses a more expensive house.

Moving may be necessary if you are relocating for work or if you experience a major change in your life. You should still weigh the pros of selling your home against keeping it.

Can you afford the next house?

In the real estate industry, this is called buying a more expensive property. Trading up. It is important to be honest when assessing whether or not you can afford to upgrade. You cannot get an objective answer to that question from a real estate agent or mortgage lender.

The lender or agent will tell you how much you can spend based on your income, down payment and other factors. You can't be told what you can spend and still achieve your financial and personal goals.

Overextending their debt in order to buy a more expensive home is one of the most common mistakes made by trade-up buyers. Their budgets may suffer a severe impact - they might not have enough money to save for retirement, pay for education expenses or just enjoy themselves. People have lost their homes due to bankruptcy and foreclosure when unexpected events such as job loss or spouses' deaths who were not insured occurred.

Be realistic about what you can afford to pay for a house before you purchase your next one. If your income or assets are not significantly higher than when you bought your previous home, then you may be unable to afford a much more expensive property. Most people should consider how much more they will have to pay each month for a house.

What is the value of your home?

You'd better know what your home is worth when you're ready sell it. You should (and so should your agent, if one is involved) research what similar properties in your area are selling for.

Do what the smart retailers do if you want to sell your home quickly and without wasting time or energy: Price it for sale. You shouldn't give away your property, but don't raise the price much above what comparable sales suggest your home is worth.

If you are not in a hurry to sell your home, you may be tempted to overprice it in the hopes that an uninformed buyer will pay more than what the house is worth. This strategy can be risky because you may not find an ignorant buyer who is willing to pay the full price for your property.

As you reduce the price to what your house is worth, potential buyers may hesitate to buy it because the property has been on the market for so long. You may not get 100 percent of the value of your home.

You have done your research to find the best real estate agent.

Most people hire a real-estate agent when they are ready to sell their house. A good agent can earn their commissions if they are able to sell the house for the highest price. As a seller, you have a similar interest to a buyer. The more money you make from a sale and the higher the commission the agent receives.

You owe yourself a good agent to represent you when selling your home. Make sure that the agent you choose doesn't have so many properties listed for sale, she won't be able to service your listing properly.

The agent who helped you buy the house is not necessarily the one you should hire to sell it. Selling a home requires different steps and expertise than buying one.

Are you able to sell your house on your own?

Some property owners have the time and skills to sell their house on their own, but most do not. You may be tempted to sell the house yourself if you can avoid the 5-7% commissions that agents charge before they try to sell the property.

Remember, though, that the buyer's agent gets half of this commission. You'll save only 2.5-3.5 percent on the final sale price of your home if you sell it without an agent. This is partly because agents are often free to buyers.

Interview several agents, whether or not you plan to sell your home yourself. Ask them for a market analysis of your house based on their experience in listing and selling homes in your area. Your asking price should be based on the prices of comparable properties that have been sold in the last six months.

Ask each agent for a list of the properties he's sold in the last 12 months. This will allow you to get references from sellers who have worked with them.

Are you ready to sell your house?

Before you even put your property on the market or let the first buyer in, the real work begins. Prepare your home for sale Both inside and outside. You should at least do the same kind of cleaning that you would do before you have your parents or in-laws over. Everything is better with a little help Alternatively, you can throw it in the closets and under beds. ).

Consider staging if you want to go beyond the basics. As stagehands prepare the set for Broadway shows, smart sellers stage their home to create an impressive production that will impress prospective buyers. Professional stagers are trained to highlight the positive features of a home and minimize its negative aspects. It may not cost a fortune for you to stage your home. Spending a few dollars on staging will pay off in the long run.

You have to do more than run the vacuum after you've picked up the dirty laundry off the floor and wash the dishes. You can ask some friends to walk with you through the home to help you find flaws and defects that aren't too expensive to fix. Take good notes and don't get defensive!

Avoid major projects such as room additions and kitchen renovations. You will rarely get enough of an increase in price to cover the costs and headaches associated with these large projects.

Are you familiar with the hot buttons in your home?

People do not buy houses, they we buy vacant lots The rest of your home will follow suit. The hot buttons are different from one home to another. Buyers are usually attracted by kitchens and bathrooms that are spectacular, fireplaces, views and gardens. People are attracted to location. You can also read about how to get started. Live in a particular neighborhood.

What are the hot buttons in your home? Remember what you liked about your house when you first bought it. You will likely find that the same things you liked when you bought it will be appealing to future buyers. Once you have identified the hot buttons in your listings, make sure to highlight them in your newspaper ads, listing statements, and multiple-listing descriptions. Before they start the marketing process, successful sellers have a good idea of what buyers are looking for.

What are the financial implications of selling?

You should know the financial implications of selling your home before you do. How much will you spend, for example, on repairs? What should you net from the sale to be able to afford your new home?

If you can't afford two houses, sell the one you have before buying another. If you need to, you can request a longer close of the escrow or a rent back so that you have enough time to sell your next house without having to camp out in the street. You should be sure of these things before you start the process so that you don't get any unpleasant surprises.

Are you familiar with the capital gains tax rules on the sale of your home?

Most house sellers are eligible for a substantial tax break under current tax laws. A large amount of Capital gains Profits or gains on the sale a home can be exempt from tax. For single taxpayers, this is up to $250,000. For married couples filing jointly it's $500,000

For the seller to qualify for the capital gains exemption, she must have lived in the home as her primary residence for two out of the five previous years. For a person who is physically or mentally incapable of taking care of themselves, this requirement can be reduced to just one year. This one-year period includes time spent in a nursing facility or other health care facility. The capital gains exclusion can only be used once every two-years.

The current laws benefit the vast majority house sellers. The majority of people's profits from house sales are not close to the exclusion limit set by law. There are some homeowners -- particularly those in high-cost areas who have owned their home for a long time -- who make gains that exceed the limits of $250,000 or $500,000. They will owe taxes on any profits that exceed the applicable exclusion limit if they sell.