Selling a house? Consider these factors…
Selling a house too quickly can result in financial losses. If you own a home, it’s important to know when the best time is to sell. You’ll need to take your personal circumstances and the market into consideration when you’re making a decision. The bottom line is, owning property is a long-term investment. Ready to sell? List your house on GotProperty and connect with buyers across South Africa.
Transaction costs
If you sell your home too quickly, the value of your property won’t have appreciated enough to cover the transaction expenses. These costs include the commission the estate agent takes as well as the closing expenses. Preparing your home to sell it can also be costly.
Equity
Evaluate the equity of your home by comparing its market price with your mortgage. Your down payment contributes towards your equity. Home improvements and an increase in the value of the homes in your area can also give your equity a boost. However, when you start paying off your mortgage, most of the money may go towards covering the interest on your loan in the beginning. If you sell your home too soon, you could find yourself out of pocket. You can put yourself in a better position by increasing your monthly mortgage payments if you know you’ll need to sell the property in the next few years.
Strength of local market
If you own a house, its value is affected by the local market. If the current market conditions favour the buyer, you may not get your ideal asking price. In this case, waiting for a seller’s market is advisable. The property market is constantly fluctuating, and you’ll need to do your research before you decide to sell. The demand for property, as well as the prices of the houses being sold, will need to be considered. Review the local market trends and look at what the experts predict. It’s important to note that property markets are specific to each area, so you’ll need to review the data from the geographical location of your property.
Personal circumstances
Before you sell, you’ll need to take your personal circumstances into account. Do you need a bigger home to accommodate your growing family? You may also want to move closer to your children’s school or to a neighbourhood with a wider range of family-friendly amenities. A change in your financial situation could also be a driving factor for you to sell your home. Another reason why many people decide to sell their property is if they get a new job in a different area. Regardless of all the advice on selling a house, your personal circumstances may force you to sell sooner than you expected.
Time of year
The time of year you put your house on the market will have an impact on how long it takes to sell. The first quarter of the year is usually the busiest time for home buying.
Selling a house takes plenty of consideration if you want to maximise on your profits. While there are plenty of financial considerations, your personal circumstances are often the ultimate deciding factor. Don’t own a house yet? Find houses for sale on GotProperty today.
