Whether you’re planning to sell your home in the next few months or just studying up for that eventuality, there’s no time like now to prepare. If buying a house seems complicated, selling involves even more responsibilities and expenses.
The very first thing you need to do is to realistically determine what is the current value of your home. Not what you want it to be worth or not what you owe on it, but the actual value in today's market. Your real estate agent can help you with that by preparing a Competitive Market Analysis (CMA).
More than likely you won't like his or her numbers...but remember don't be angry at the messenger. If the numbers are workable for you then it is time to start the work of getting your house ready to sell.
If the numbers are not workable for you then it is not time to sell. The biggest mistake you can make is to go find another agent that tells you what you want to hear. If you do that you will end up putting your home on the market at a price that nobody will pay or ever bother to look at. So if the number will not work for you and your have to move on from your current location, you might consider leasing your home or talking to your bank about a possible short sale if you owe more than it is worth.
Our previous blogs explains short sales and the potential consequences of a short sale. In some cases a lender will allow a short sale if you can prove hardship and in other cases they will approve a short sale but will hold you responsible for the difference, this happens when you can't prove a financial hardship or have a substantial income that will allow you to pay back the difference.
Be sure to see our blog tomorrow that tells you the steps you need to follow if you decide the time is right to put your home on the market.
Labels: cma, homes for sale, preparing your home for sale, short sales
