Getting Financially Fit

If you're planning to sell your home, be sure that you are executing a home sale that aligns with your life. For many sellers, the property preperation work is the first thing they think of. Decluttering your home is always the first start. Hire an agent to come into your home and tell you what needs to go. Then pack up the stuff and hire painters and housekeepers to update the home. Finally, here is where the financial preparation comes into play. 

1. Get cleared on your current credit score. Chances are this is where everyone spots credit glitches like bills that need to be paid and errors that sometimes occur. Be sure this gets the green light before listing your home to sell. And remember, the earlier you get started the more time you have to get it solved. Sometimes it can take months (or even a year) to complete this process. The earlier you start, the quicker you can finish.

2. There’s a lot that needs to be accounted for in housing costs before making a decision to sell your home. Just because interest rates are good, or you just got a raise doesn’t mean you’re ready to buy or sell. Factor in what the actual increase in your mortgage payment is going to be and how much you’ll net on your current home, how much cash you need to close on your new home, and how much things like utilities, property taxes, insurance, and other home-related expenses will be.

If you’re looking to downsize your current home to a smaller home or condo, you might see an increase in your property taxes. You might even get an HOA bill you’ve never seen before. Ask your agent to help you understand what sort of downsize or new property you can look to get into at various price points. Ask your mortgage broker to help you understand financial scenarios for purchase prices, down payments and monthly payments, and your tax advisor to understand impacts of various home scenarios on your income taxes.

3. Home inspections are key when getting ready to sell your home. Sometimes surprise property problems can complicate your sale or taxes that need to be paid to close the deal. Don’t wait until you have a buyer for your home. Get a home, pest, and / or roof inspection before your house even goes onto the market. This empowers you to make any necessary repairs what needs doing in your home.

4. Create a financial plan for the sale of your home. When you buy a home, sellers pay both agent’s commission. Make sure to calculate the average 5-6% of the purchase price to cover your listing agent’s work and the buyers agent too. Depending on the condition of your home, you might need to spend a few bucks on DIY projects to showcase your home to it’s full potential.

Need advice on your home sale, or looking for a mortgage broker / financial advisor who can help you? Give me a call today to see how I can help you.

Your Local Real Estate Expert,