Whether you already put your house on the market, or you are contemplating selling your home, there a few mistakes that you should be sure to avoid. While each sale is unique and you can’t always predict what will happen, it is important to try to make sure you are aware of all possible outcomes when it comes time to put the for-sale sign in the yard.
#1 Not Planning for Seller Related Costs
Oftentimes as the seller you are led to believe that you will have no costs associated with the sale of your home, after all, you are the one selling, therefore the one profiting, right? Wrong. While in most cases you will still walk away with a good lump sum of cash from the sale, you have to plan for and expect to pay out a few different fees throughout the selling process.
Related: Selling Your House? Here’s What to Leave Behind
The most common things you should plan on paying will include agent commission and closing costs, however in some cases you may also be asked to lower the price to accommodate for potential repairs that are needed, this is known as a seller concession, or in lieu of the concession, you could be asked to repair the damage/pay the repair bills prior to closing. Other expenses will also be factored in such as moving costs for yourself as well as potential staging for the home you are trying to sell.
#2 Selling When You Have Negative Equity
Negative equity simply means that you owe more on your home than it is worth, this could also be referred to as being in an upside down or underwater mortgage. Selling in this scenario is generally not a good idea as the sale of your home will not be enough to cover the outstanding mortgage loan. While it indeed could help pay down the balance you owe, that will not fix the problem and you will still be left with a large debt even after the sale.
Related: Why Does My Principal Balance Take so Long to Decrease?
If you find yourself upside down in your mortgage, generally speaking the only reason you should choose to sell is if it is a last resort and there are no other options available to you prior to bankruptcy or even foreclosure. If at all possible, and you are able to continue to pay on your mortgage each month, the best solution is to try and re-vamp your home and build up enough equity to help cover what you owe on the home prior to choosing to sell.
While the list of potential mistakes you could make when choosing to sell could go on and on, these two factors can play a huge role in your success or failure. As with all real estate transactions, it is vital that you work with an agent you trust who is highly qualified so that they can help guide you through the buying or selling process as smoothly as possible.
If you’re ready to sell your home and are in need of a qualified seller’s agent, are searching for a new home, or have any questions regarding Camano Island Real Estate, please feel free to contact our office at any time.