Deciding to Sell

So you've decided to sell your house. Before anything else it's a good idea to sit down and clarify your motivations and draw up a basic time frame for the selling process.

Define Your Needs
Write down all the reasons for selling your home, "Why do I want to sell and what do I expect to accomplish with the sale?" For example, a growing family may prompt your need for a larger home, or a job opportunity in another city may necessitate a move. For your goals, write down if you'd like to sell your house within a certain time frame or make a particular profit margin. Being clear about your intentions for selling will make it easier for an agent to determine the most appropriate option for your specified financial, lifestyle, and real estate goals.

Work with your real estate agent to map out the best path to achieve your objectives and set a realistic time frame for the sale.

Understanding The Market and Pricing
Your next objective should be to determine the best possible selling price for your house. Setting a fair asking price from the outset will generate the most activity from other real estate agents and buyers. You will need to take into account the condition of your home, what comparable homes in your neighborhood are selling for, and state of the overall market in your area. It's often difficult to remain unbiased when putting a price on your home, so your real estate agent's expertise is invaluable at this step. Your agent will know what comparable homes are selling for in your neighborhood and the average time those homes are sitting on the market. If you want a truly objective opinion about the price of your home, you could have an appraisal done. This typically costs a few hundred dollars.

Remember: You're always better off setting a fair market value price than setting your price too high. Studies show that homes priced higher than 3 percent of their market value take longer to sell. If your home sits on the market for too long, potential buyers may think there is something wrong with the property. Often, when this happens, the seller has to drop the price below market value to compete with newer, reasonably priced listings.

Optimizing Finances
Deciding to sell your house demands a serious consideration of your current financial situation and future possibilities. With the help of a qualified agent, you will be able to effectively assess the cumulative impact of these changes, estimate potential proceeds of selling your house, and plan effective tax savings and estate planning strategies.