Many people contact me when they are ready to put the sign in the ground and get their house on the market. Know there are a few important financial housekeeping steps to take care of prior to preparing your house for market. The time that I like to call the “1-2-3 Getting Financially Ready to Sell”. Do a thorough examination of where you stand financially and determine where you are headed.
Chances are that once you sell your house, you will want to buy another. If this is the case, it is important to check your credit to ensure your score is where it needs to be to qualify for the next mortgage. If there are blemishes on your credit, do what you can to get them corrected NOW.
Are you increasing or downsizing? If you are increasing in size, be knowledgeable and realistic about what you need to net from your home. With a little information from you, I can provided you with a Net Sheet, which will show estimated closing costs, payoff amount and what your bottom line, net will be. Next have a good idea what your new payment will be, including the increase in taxes and insurance.
Downsizing? Make sure you understand all possible new expenses. If you are moving into a condo, what is the new HOA fee, what is the frequency and what does it include. How much has HOA increased annually over the past few years? Just because you are downsizing doesn’t mean that your property taxes will go down. If you move to a different state, they might go up. Be aware of any possible new expenses, as it could end up costing you more in the long run.
Make sure you have put some money aside to prepare your home for sale and to be able to pay for those expenses that come up during the sale. For example, it is important to properly prepare your home for sale, there are many ways to do this and it is a very important step to the selling process. I can help you navigate the best ways to spend money during this process. Updating doesn’t have to be expensive and can increase the price of your home as well as reduce the time on the market. Once you get the house under contract, there are possible expenses associated with home inspection items. Make sure you are prepared for some expenses during this time.
Make sure you have a good plan in place when selling your house and have a complete understanding of the process. This will help make the transition to your new destination much smoother.