You want to uproot you and your family and get out of town. You’re likely thinking of how to get top dollar for your home. Guides from the likes of Trulia offer lots of insight into how to effectively price your home and get the best deal.
What you need to consider is your own financial fitness. Whether you’re financially ready to list your home will influence whether you get the amount you deserve.
In this guide, we will teach you how to evaluate your financial fitness.
Your Credit Report
Everything goes back to your credit report. We’re going to assume you want to buy a replacement house. Can you get a mortgage on your desired home?
Believe it or not, a lot of people don’t think about this until later. They receive a nasty shock when the bank rejects their mortgage application. Inspect your credit report. If you want a guide to doing this, we recommend this Forbes.com article. It offers you an insight into the true importance of the credit report.
Minimum and Maximum Movements
Just because you’ve gotten a raise and can afford a new home doesn’t mean you should move. Eyeball the rates as much as you like, but house prices change all the time.
The Wall Street Journal reported at the end of last year that house prices were up by 13% on their 2007 prices in Oklahoma City. A similar rise of 6% was spotted in the Denver Metropolitan area. Yet many analysts predict prices will stagnate in 2014.
It’s the same story each and every year. Prices move up and down rapidly all the time. If prices rapidly increase, you could find your dream house suddenly becoming unaffordable.
Assess your tolerance for price movements. Can you handle a five or ten percent rise in prices? If the answer is no, you shouldn’t be placing your house on the market.
Get the Inspections Now
Do you know about any existing problems in your home?
If not, now is the time to start having reports completed. Most sellers will demand independent inspections of things like roofs and heating systems. Should a problem appear, you’ll either need to pay to have it fixed or lower the price of the property.
Such occurrences can ruin the best laid financial plans. Order inspections of all the essentials before listing your house. You’ll be thankful for it later on.
Make sure you have an idea of who you’re listing your house with. Every listing agent has different requirements and offer different levels of support. If we look at RE/MAX of Southern Ohio, for example, we can see that they offer a more personalized service for both buyers and sellers.
I looked for a house in Southern Ohio quite recently. One of the first things I did was make sure that I was financially able to stomach any price changes. The company helped me make my calculations and give me a rough idea of my tolerance for risk.
Despite the fact these points are important for sellers, they apply equally to buyers. You must assess your financial fitness no matter what sort of real estate transaction you’re attempting to make.