When families decide to move out of their starter home, they often face a lot of stress they did not expect. Trying to sell one home while buying another can be an overwhelming process.
That is why there are a few things sellers must keep in mind when they approach this process, to avoid considerable mistakes that could put their finances at risk.
So, what are three mistakes to avoid?
1. Not evaluating their finances
Of course, buying a home is a considerable investment. Families often wait until they have a secure income they rely on before buying a new house and obtaining a new home loan.
However, families must make sure they carefully review their financial situation while also preparing for the home sale, which often involves:
- Making repairs to the home;
- Updating and renovating the home; or
- Hiring an agent or attorney.
The U.S. News & World Report determined that the cost of selling a home can often be significant. So, it is critical for homeowners to have a strategic financial plan for their sale.
2. Pricing too high – or too low
Finding an appropriate price when listing a home is absolutely essential. If sellers price their house too high or even too low, potential buyers might overlook it. Overpriced homes often stay on the market much longer than homeowners would like.
Therefore, sellers must ensure they:
- Get a comparative market analysis;
- Research prices of similar listings in their area;
- Get an appraisal of their home.
In Connecticut, the law requires homeowners to hire a real estate attorney to close on a sale. However, experienced real estate attorneys can also assist homeowners throughout the process and optimize the details.
3. Not considering timing
Homeowners will often find many sources claiming they know when the best time to sell a house is. Unfortunately, there is no perfect time of the year when it comes to selling a home. Homeowners must consider the timing of their sale carefully, and:
- Watch the mortgage rates; and
- Keep an eye on the market and economy.
They must also make sure that the timing of their sale meets their personal needs as well.