Filled with memories and attachments, selling a property is a big decision. It takes a lot both financially and emotionally to move, so it’s important that you’re certain this is the right decision for you.
But how do you know when to take the plunge? Here are some of the biggest tell-tale signs that it might be time to sell.
Equity is how much you have left over after you subtract your mortgage balance from the current market value of your property. Since most payments at the beginning of your loan will go towards paying off interest, it usually takes around five years before you start building equity. During this time, the value of your property might also increase, leaving you with an even larger sum.
When selling your home, it’s important to have positive equity. This will help cover the costs of a deposit on your new place, as well as all the other costs that come with moving. On the other hand, negative equity could leave you worse off, so this is a key financial factor to consider when deciding to sell.
The costs of moving quickly add up, from surveyors and solicitors to selling fees and stamp duty. While equity can help, it’s best to set this aside as a deposit for your new home. The bigger your deposit, the better your mortgage terms will be.
This means that you should ideally have some savings set aside to cover your moving costs. You’ll also want to make sure your finances are in a good position overall, so settle up any debts and avoid taking out new loans. This will show your mortgage provider that they can trust you with their money, and give you a good idea as to whether or not you can afford any increased monthly payments.
If you’re in a good place financially, then that will put you in a good position when it comes to selling.
If you’ve been toying with the idea of moving and regularly browse through property listings, then that’s a good sign that you’re ready to move on. Even so, the entire process of selling a home can be emotional and stressful.
Remember that your property won’t suit everyone’s needs, so try not to get too disappointed when viewings don’t lead to offers. Be prepared to take negative feedback on board, and use it to make adjustments that will help you sell next time.
Then there’s the buying and selling process itself which can get complicated, especially where chains are involved. Do some research so you know what to expect and which steps you need to take.
We buy properties to suit our needs at a certain point in life. As those needs change, you might find that your home no longer has the space to do what you want, or even that it has too much space.
If you need extra bedrooms, want a dog or fancy a home gym, then it might be time to look for somewhere bigger. On the other hand, if the children have flown the nest or you’re struggling to keep the garden under control, then downsizing could be the best way forward.
Whatever the reason, if your house no longer suits your needs, then it’s probably time to start looking for the perfect property.
Just as your spatial needs change, so might the needs of your location. Work, family and lifestyle changes mean that what was once a prime location might not be quite the right spot anymore.
As the children grow you might be looking for school catchment areas and parks, or you might want to reduce your commute time to work. There are also countless other location factors to think of, like healthcare, shops, and family.
Start looking for somewhere that puts you where you want to be, and make a list of all your location priorities to help narrow down your search area.
You might be considering an extension or adding an extra bathroom to help add value to your property. Talk to your estate agent and see whether or not they think your proposed changes will be worthwhile. If it looks like it could help add value to your property, then plan out exactly what you’re going to do, how much it will cost and how much value it would add. If the profit is worth it, then create a detailed budget and stick to it.
It’s important to have strict budgets and only make changes that add a real benefit. Otherwise, you could easily overspend and be left with a loss. If renovations will add little to no value on your property, then making changes could be a false economy. In that case, now is probably the best time to sell and move on to your next project.
When similar houses nearby sell quickly for a great price, this is a good sign that you have a desirable property and it might be a good time to sell. Find out how much your home could be worth and whether the figures would add up to make it worthwhile.
If nearby sales have got you intrigued, then make sure there are other signs telling you to sell up. This is a big decision, and while the money might be tempting, other properties will probably have gone up in price, too.
If you’re looking to sell a second property, then a seller’s market should make you a good profit. But if you’re looking to sell your main residence and find a new home, then this could make moving difficult. You might need a bigger deposit, and getting good terms on a mortgage could be a challenge.
It all depends on your personal situation, and if you decide the market is in your favour, then make sure you have other reasons to justify selling as well.
If your home is in good condition and been well looked after, then it will be ready to sell and charm your buyers. Should it need work doing, then it’s best to get started before putting it on the market. As a starting point, tidy up the front for added kerbside appeal, and choose neutral colours for the interior.
Any serious building works will also need putting right. They might be hidden to the untrained eye, but an experienced surveyor will be able to spot any issues right away. This could jeopardise your sale, so get your property fit for sale to avoid disappointment.
At Coleman Estates, we have a friendly team of estate agents on hand to offer advice. If you’re feeling financially and emotionally ready, then get in touch and we can guide you through the current market.
With a reputation for delivering accurate valuations, we can give you a clear picture of your property’s position. We’ll also make recommendations on how to wow your potential buyers, and suggest any changes that could add extra value.
Get in touch to learn more and find out why we’re Telford’s best-rated estate agent.
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