Can you afford to sell?
One of the first things sellers always want to know is how much their home will bring if they were to list it. Home prices have soared in the last few years and many home owners have a great deal of equity and their total net worth tied into home ownership. But like most things, it’s important to look deeper at the situation and consider all aspects of your situation and things are not as straight forward ad you may think and you may discover that you are not be able to afford to sell your home.
Show me the money..
I think most sellers realize there are additional fees associated with selling the home. Agent commissions and taxes can impact your bottom line (EP 47). An informed seller will also need to consider how lines of credit and forbearance (EP 86) can have a dramatic impact on the bottom line at closing.
The impact of a cooling market
Most people are aware that the market was fire cracker hot the last few years. Due to the demand of there being more potential buyers than homes on the market, buyers were having to offer well above asking price for homes and guarantee a price above appraisal just to have their offers considered against the others they were up against.
Now that the market has cooled off a bit, and those buyers move towards selling the situation take another turn. If the home hasn’t appreciated enough to cover the additional cost of selling, home owners may actually discover they don’t have enough to cover the mortgage and additional fees to sell the home.
If you don’t have enough equity in your home you may have to bring money to closing. (EP17) If the home owners had a significant amount in a down payment, they may discover the empty feeling of walking away from the closing table with less money than they started with. Every situation is different but sellers may be better to hold onto their home for a little while longer and build more equity before they decide to sell.
More on the way
I recently spent a full day completing the next few episodes. I have all the way to episode 100 produced and I’m excited for whats coming in the next few months. Stay tuned for more great content or take a dive on the existing ones over at chriswhitehurst.com I love the idea of helping people make wise real estate decisions.
My heart of a teacher is always front and center as I guide my clients through the process.
If you or someone you know can use my services, I hope you will give me a ring. Until next time….Welcome Home!
Rose and Womble
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