Selling Your Current Home |
Selling your home when you are planning to relocate isn't really too different, and my intent here is NOT to counsel on the methods you should employ (maybe later) but to emphasize some issues that you should be aware of given you are relocating (not down the street but far away, say hundreds of miles or more).
1. Get it sold before you move, and before you buy another house, if at all possible. This is particularly important in most markets today since homes are sitting on the market much longer. If you commit to another house but yours doesn't sell, and you NEED to be in your new home for work, etc., you are in a pickle. Plus you have to qualify for that new mortgage and may not if you have a home you need to sell.
2. Be conservative in your pricing. This is even more important with a relo because you cannot afford to not have the house sell, in most cases, and we all know there is a lot of competition. Since you need to make a clean break and move on, get the place sold. Holding out for a few thousand dollars (only a possibility) does not make sense. And if you NEED to make a certain net on your house you could be in a tight spot; and you may be cutting things a bit short in terms of trying to make a move into a new home right away. Whenever you buy before you sell you GIVE UP your power of control.
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3. Plan a strategy to deal with the various contingencies that might arise so you have some backup plans. For example, the house does not sell right away but you need to move for work - do you go and leave the family behind? Does everyone go and the house remains vacant? Think about how long you can realistically afford to wait to sell before you either don't make the move or delay it (if that is an option), or you have to rent. Look at your monthly expenses and how much cash you have to hold you over.
4. Find out what your current employer (or new one) will or can do if the house does not sell. While some will buy it themselves, this represents a significant financial burden, especially in this market, so they may not be willing to do this. If there is a relocation firm involved, find out if they purchase and then sell on their own. Be sure you find out what the price will be - this MAY NOT be to your advantage financially. Of course, if the house does not sell and renting is not an option, you may have no choice.
5. Investigate the rental market thoroughly, including asking your agent, so you know what your home could realistically bring in the rental market. This is critical in case you need to make a decision about renting or not. Understand and prepare for the difference between your rental income and your monthly expenses - will the rent cover your loan payment? 75%? Make sure you understand all the financial issues so you can make an informed decision if you need to.
6. Keep in mind that the rental market may also be soft; there is no guarantee that your home WILL rent right away at the price you want or need.
7. Consider what needs to be done if you go ahead and relocate but need to continue marketing your home. Your agent can handle this from afar but you will need to be involved.
8. Look into having someone to property manage you place after you leave. This may be more important if you rent, since your agent can, and should, watch out for your home while it is being marketed.
“Everything that irritates us about others can lead us to an understanding of ourselves.”
C.G. Jung (1875 – 1961)
