Learn whether selling your home for “fast cash” in the current economy is a wise choice…
In the past few years and particularly since the COVID-19 era, the “home selling environment” has had many new entrants outside of traditional real estate companies and selling your home yourself.
Even so, is it a wise or good decision to select among the new entrants into the real estate market when it comes to selling your home?
In many areas of the country home buying companies from old entries (we buy ugly houses—Homevestors etc.) to new entries (Redfin, Zillow, Open Door, Real Estate Companies, Investors—along with other players in the market) have been advertising in an aggressive manner to get you to sell your home in a hassle-free and less burdensome manner.
Are these new approaches to selling your home a wise or beneficial approach for you to take?
Like most things in life—it depends, however you want to ask and answer a number of questions upfront prior to selling your home—and particularly if you are considering selling your home using a company that is willing to purchase your home “as-is” for a stated price.
And with the warmer weather, spring season and new home buying season approaching, what about those who desire or need to sell?
In the following paragraphs TheWealthIncreaser.com will present a number of concerns that you should address if you are considering selling your home at this time or in the near future.
- Purchase your home with the end in mind
When you initially purchase your home you want to have an idea of what you plan to do at the end of your home ownership.
Did you purchase the home that you are considering to sell with that approach in mind?
Did you ask the following questions prior to your home purchase?
Do I plan on selling, transferring to my heirs, renting for income, refinancing for income, selling for a gain or remaining in the home until I transition?
It is in your best interest to make a determination at the time that you purchase your home generally speaking—not years down the road when you possibly have to make a bad choice!
Having said all of that, we know that adversity or unwanted occurrences in life can throw even the best of planning into a spiraling nightmare where you are forced to make moves that you would rather not make.
Furthermore, you may not have been aware of your need to purchase your home with the end in mind—prior to your home purchase!
And with home prices rising in many areas of the country, even if you sell you still need a place to stay and it is important that you make the best decision that you can–as housing costs are on the increase–not decrease in most areas in the United States, and are also rising in other parts of the world.
Even so (on your next home purchase), it is in your best interest to purchase your home with the end in mind so that you at least have some control over where you can go in your future—and thereby reduce the likelihood of being pulled in directions that are not of your choosing.
- Determine on your own what your home is worth
Most companies that offer to buy your home use computer generated estimates using factors in your area or zip code, such as sales data, taxes, trending data etcetera to determine an offer price. Some will even ask you to complete a questionnaire and then determine their offer price based on how you answered the questionnaire and other available public data.
A computer can’t see inside of your home (they can see outside though) and know what improvements you have made and other features that are unique to your home.
Based on computer algorithms the data included may undervalue or overvalue your property!
Therefore, it is important that you determine the value using a local real estate agent in the area who can view the interior and exterior of your home and come up with an “as-is value” and “a value if needed repairs and/or upgrades are done” and your house is put on the market.
Some real estate companies also offer to purchase your home as-is or with offers that are often less than the true market value.
In other cases some companies will list your house and guarantee to buy at 80% or some other figure of listing price if the property does not sell in a given time frame. Still others will offer to get you into a new house of your dream and purchase your home that you are trying to sell at a later date for a negotiated price.
Some companies will offer to purchase your home as-is and will even offer to allow you to stay there 30, 60, and even up to 90 days after closing!
Rarely are the prices offered by companies that have not seen the interior and/or exterior of your home the best decision for you to make as far as selling—even though in some cases it could be—depending on your market and your current financial predicament.
If you do the needed repairs and upgrade in a way that is relative to the current market conditions you can pocket the gains that may have went to “investors” or other “as is” purchasing companies–and in some markets the gains could be substantial.
Always keep in mind the fact that you will have to pay to live somewhere—and keep that at the forefront of your thought process as living expenses (including housing) are on the rise in most areas.
- Choose the best option based on your unique circumstances
Are you now forced to sell your home or is time on your side?
These and other pressing questions will help in your decision making process as to how to sell your home!
Do you have an emergency fund that is properly funded?
Do you have little to no debt outside of your mortgage payment and do you have all areas of your finances addressed at this time?
Do you have the needed cash flow on a monthly basis that allows you to live at the level of comfort that you desire? Have you reached your retirement number (or are you on a realistic path to reach that number) or is that number a mystery to you at this time?
If you answered in the affirmative to any of the above questions, it may be in your best interest to do the needed upkeep/repairs and put your home on the market using a real estate agent or sell your home yourself.
In many areas of the United States resale homes are in short supply and that could work to your benefit depending on your future goals and your local real estate market!
If you are forced to sell in a non-traditional manner—at least get offer prices from a number of companies and choose among the offers that are firm and offer you the best price and terms.
If you are in position to list your property with a real estate company, make sure your property is in selling condition if possible, and choose a reputable company and agent and get comparable home data based on realistic comparable sales data—and not just listings in the area.
The decision to sell your home and how you will sell your home is a personal decision, however you want to be informed about the process as the decision that you make can be a monumental one as far as helping you build and maintaining your wealth. It is imperative that you put yourself in position to make a wise decision on the front end so that you can get a fair price for your home at the time of sale.
You don’t want to be pressured into making an unwise decision or forced to choose among bad alternatives.
No other person on earth cares as much about your future than you do. It is therefore up to you to make wise decisions in your home selling transactions and all other financial transactions. You may want avoid selling now and hold on to the equity in your home or pursue other options–depending on your goals.
Always realize that home prices can rise and fall and all markets are different when it comes to real estate.
And always remember that you will have a need for decent shelter at all times while you are here on planet earth and you want to plan for your housing needs in a manner that is best for you—not the real estate agent, real estate company, mortgage company, escrow company, investor, repair company or any other party to your home selling transaction—because in the end it is you who must make the right decision and live with that decision.
It is the desire of TheWealthIncreaser.com that you can now do so with more precision.
All the best toward your “home selling success” or “staying put” if you now decide to stay in your nest…
Looking to relocate…visit the Relocationcenter.com
Learn more about smart homes…
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Return from Home Selling in the ERA of COVID-19 & Beyond to the 3 Step Structured Approach to Managing Your Finances
Return from Home Selling in the ERA of COVID-19 & Beyond to How to Make Your Home Sell
Return from Home Selling in the ERA of COVID-10 to How to Choose a Real Estate Agent/Company
Return from Home Selling in the ERA of COVID-19 & Beyond to Home Buying News
Return from Home Selling in the ERA of COVID-19 & Beyond to Home Selling News
Return from Home Selling in the ERA of COVID-19 & Beyond to Curb Appeal & Selling Your Home
Return from Home Selling in the ERA of COVID-19 & Beyond to Mortgages & Wealth Building
Return from Home Selling in the ERA of COVID-19 to Mortgages & Personal Finance
Return from Home Selling in the ERA of COVID-19 to Negotiating the Buying and/or Selling of Your Home
Return from Home Selling in the ERA of COVID-19 to Timing & Personal Finance
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