Should the timing of Selling your Home be a BIG decision?

Barry Osborne

I have used a philosophy in business for a large number of years now and that is “Most decisions are already made for you if you keep the emotion out of the decision making.” This is most critical when Selling your Home.


This is probably the biggest decision that you will make and if you make the wrong decision than it could cost you much money as well as waste a lot of time and cause you much heartache. This decision has to be a very logical and an informated decision. You have to take the responsibility for your decision and not leave it in the hands of others who could lead you along the path of the Selling Your Home Lottery. It is your property and more importantly your ASSETS must be protected at all costs.


Let’s go through that decision making process, which could follow:


# STEP 1 What value on the house, makes it a viable deal for you?


This is extremely important if you have bought the property in the last 7 years or so which means you bought the house in the peak of the market but now selling at a low point in the market. In some states like NSW and Victoria, the market seems to be rising but probably still below the 2007 values. You are probably considering selling because you want to reduce the mortgage because your work situation has changed or the level of debt is affecting your lifestyle. You know that it is critical that if you sell in this market you will want to buy back into this market.


The best way of keeping the emotion at bay is to focus on the facts. So let’s look at the facts, without even looking at the price at this point. So get the accurate figures for the following:


Mortgage on the existing property                           $?00,000


Minimum Deposit Required for next property               $?00,000


Commission & Legal expenses on Sale                        $ ?0,000


Marketing Costs of Sale                                          $  ?,000


Cost of bringing Property to Sale Standard                $ ?0,000


Relocation Costs                                                   $  ?,000


New Location may require upgrading                         $ ?0,000


Legal Costs and Stamp Duty on new Home                $ ?0,000


Most of these figures can be determined fairly accurately, but with some they may be guesstimates but at least you are setting budgets to adhere to. But include everything you can think of. But as you can see, no emotion has entered into this figure and you have a Total Price that represents the real base price that you require for selling your house. Ideally you will hope to achieve more asset value in the sale of your house than just the minimum deposit for the next house. But this is a hard market which you must accept and you want to appreciate the minimum price required.


# STEP 2 What is the Value of your house in Today’s Market?


This is where Mr Google comes in handy. Just Google the question “Value of my home” and you will see there are plenty of sites where you can spend some time to get a number of opinions. Most could be free but some you can pay for and it may well be worth a little expense to get the independent opinion which is their job and not a front for a Real Estate Agent. So this will give you some idea as to a realistic value. But there are other worthwhile opinions, which you should also get, which are:



    • What are the recent sales of properties in your area?

This you can gain to a certain degree from Google and some other sites like the real estate portals. But as you know, all properties are different and it is sometimes difficult to say how the price will compare as there is a value as to the difference of the property. This is one area you will have to watch your emotion. If there is something better in your house you will have a tendency to over value it. So you go to the next point.



    • Get the opinion of 3 Local Real Estate agents?

Be careful, no signing up until the completion of this whole exercise. Take an average of these but if one seems far too different, you may want to get another to replace that one.


# STEP 3 Compare the price in Step 1 to Step 2.


If the price in Step 2 is less than the price in Step 1, your decision is NOT TO SELL at this stage but to wait for the market to rise somewhat. Don’t get convinced by some good sales person that they can get you a better price; you will only get into trouble. You would waist less time and spend less money by buying a lottery ticket instead.


If the price in step 2 is greater than the price in Step 1, your decision is to CONSIDER A SALE.


# STEP 4 What is the Market offering in House Sales for your budget?


You now have a budget as to what you want to REBUY a home for. What is the market offering in house sales at this moment for that budget? Start to research out on the Real Estate portals and you and your family go and inspect some of the properties. Your decision will be made. But if you do not go through this procedure and leave it to fate, you could find yourself living in a lesser quality home with nearly as much debt.


It only takes a few bad investment decisions in life and you could find yourself later in life without the asset base that you need for the security of your old age. So it is important to make certain that you make well informed decisions in selling and purchasing property, your major asset base.


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Our well being in life depends on keeping the value in our assets that we have worked so hard for. Propertyconnect.me is committed to bringing change to this industry and the change will be driven by the consumer. We need your support. Please see below some FREE nformation on Real Estate Marketing if you are considering Selling Your Home.


 


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