7 Steps To Deciding Whether To Sell Or Stay
Deciding whether to sell or stay can be difficult because it’s an important financial decision wrapped up inside strong emotions and memories.
These 7 steps can help you to:
- Clear away confusion so you can see what’s best for you and your loved ones.
- Know when to put your house on the market so you can move when you want without frustrating delays.
- Put extra money into your pocket.
Here’s the first step:
1. Write down exactly what you want to accomplish (and when you want it).
You gain clarity as you focus on what you want … not on what you do not want.
This step also comes in handy later when you’re:
- Evaluating the price you’re likely to get for your home,
- Considering the features and prices of homes you and your family would enjoy, and
- Setting the best date to put your home up for sale.
If you’re making this decision along with someone else, be sure to include them in this step too.
If you don’t, it can later lead to disappointment and frustration.
2. Clean up your home search criteria.
Now that you know exactly what you want, stop looking online at homes that don’t match your criteria.
(It’s also a good idea to stop dropping in random open houses. Instead, plan it out so you only hit the ones that match your criteria.)
This step will help you get realistic on what your dream home is going to cost.
3. Figure out when to put your home on the market.
Allow at least 3-5 days to set-up the marketing for your home.
Then, allow for the 2-month average Days-On-Market (DOM) analysis of homes similar to yours in your zip code.
This is how long it’s taking homes like yours to find a buyer. (For a free, no-obligation DOM analysis, email us your property address.)
Allow another 30-45 days to get through escrow once you find a buyer.
Add all of these together and you’ve got an accurate estimate of how long it will take to sell your house.
4. Find out how much you will “net.”
The “net” is how much you pocket from the sale of your home, after all seller expenses are paid.
Seller expenses include:
- Paying off all mortgages and lines of credit on the property,
- Seller’s portion of title, escrow and transfer fees,
- Real estate commissions,
- Reports required by law to be provided to the buyer, and
- Prorated taxes (which can sometimes be a credit instead of an expense).
(For a free, no-obligation “net” sheet, email us your property address.)
Knowing your true bottom-line profit is important when deciding whether to sell or not.
5. Find your true mortgage payment threshold.
Unless you’re paying cash, it’s important to find out how much that new dream home is going to cost you each month.
(For a free, no-obligation mortgage quote, email us your desired price or payment range for your next home.)
If you’re not comfortable with the payment, it’s better you know now – before you put your house on the market – rather than later – once you’ve wasted a lot of your time and energy.
6. Find out if you’ll pay capital gains tax.
Capital gains are “profits from the sale of a property or investment.”
This means that profits from the sale of your home are considered capital gains.
Whether or not you’ll be taxed on those profits depends on:
- How long you’ve owned the property,
- How you occupied the home,
- How much your profits are after acquisition costs, and
- Possibly some other factors.
You’ll want to consult with your tax professional but in most cases, your profits will be exempt if:
- You’ve owned the home for at least 2 of the last 5 years,
- You’ve used the home as your primary residence for at least 2 of the last 5 years, and
- You haven’t excluded the gain from the sale of another property in the 2 year period before the sale.
If you meet all those conditions, you’re likely exempt from taxes on profits of up to $250,000 if you’re single or $500,000 if you’re married filing jointly.
(Please check with your tax professional regarding your exact situation.)
7. Compare real estate commissions.
Real estate commissions can bite a huge chunk out of your money because the fees are often 4% to 7% or more.
When that happens, the buyer’s broker is typically paid 2% to 3% and the listing broker pockets the difference.
Our fee to list your home is only $3,150 and includes all listing services and marketing. (Luxury homes, investment properties and distress listings at a different rate.)
That’s lower than Redfin, Purplebricks and most all brokers, Realtors and agents.
And there are no upfront costs or cancellation fees like Purplebricks and some other brokers.
Knowing how much it will cost to sell your home will help you decide if you should sell or stay.
BUYING OR SELLING SOON?
If you’re serious about buying or selling, we offer free help by phone. This way, you can get answers to your questions while getting to know us… without the hassle or pressure of meeting in person. If this sounds interesting to you, click here to schedule a time to talk.