Looking Into Your Crystal ball
Your equity depends on it
Planning ahead preserves maximum equity in the sale of your property. The further you can see into the future, the better.
Is there a home sale anticipated eventually? Are you contemplating a move, such as when the kids are in college or after retirement? If so, start strategizing now.
Properly updated properties sell more quickly and encourage top dollar. If you update now, you can live in your space and enjoy the changes. When you are ready to move, you will have alleviated much of the stress.
Notice the emphasis on properly updated. That means neither taste specific nor too trendy (which may go out of style by the time you go to sell). Yet, appealing to the largest buyer pool possible does not mean cookie cutter and boring. What you want are custom designed results that will differentiate you from the competition. You will ultimately be selling your home, so focus on return on investment and watch your budget.
Are you ready to sell? Sell an occupied property whenever possible. If you are getting ready to move from one house to another in town, concentrate on overcoming the obstacles and preparing your house while you are still living in it. Although living through the process is stressful, it is a lot less traumatic than the economic consequences of convenience.
Let us talk about the financial significance of moving to your new property before placing your current property on the market.
- How many months has it been since you considered moving? Recognize that monthly carrying costs (how much it costs you to live in your house) average about 1% of listing price. Do the math. Multiply those monthly carrying costs times the months you delayed preparation.
- Now that you have moved into your new space, you have carrying costs for two properties. Do the math.
- You will probably opt to rent furnishings so that your vacant property will be more appealing to buyers. Do the math.
How much have you spent unnecessarily for the luxury of not wanting to live in the house while selling it? The financial stress certainly is worse than the perceived aggravation of selling an occupied property. The bottom line is, well, the bottom line. When your home is typically your largest investment, why throw away any of the equity you have earned in it?
What do we know? Delay is time. Time is money. Thinking ahead, or at least starting to prepare your property as soon as you decide to move, will help secure your investment.
