Considering Selling Your Home?
If you are thinking about selling your home, you’ll want to gather as much information as possible. Based on our experience working with families and individuals in Washington DC, Maryland, and Virginia, we are sharing some of the big considerations our clients have faced.
Consider Your Current Budget
“Most mortgage lenders recommend using the 28 percent rule, which means (in theory) that you shouldn’t spend more than 28% of your monthly income, before taxes, on your mortgage” according to Interest.com But the U.S. Bureau of Labor Statistics reported in 2019 that the average American family is spending more like 33% of their income.
Now that COVID-19 has driven up unemployment and economic uncertainty, many people are struggling to cover their house payments and have money left for food and living expenses. Laying out a workable monthly budget and evaluating living arrangements are things people across the U.S. are now faced with.
Consider Your Needs
Is your current home large enough to meet your family’s needs?
Does your home need updating or significant improvements?
Can you handle yard maintenance and home upkeep and repairs?
Does your location offer good schools and access to the stores and amenities you depend on?
It is good to build a list of your needs and evaluate how your current housing meets or fails to meet them. Do this as a family so that you can have everyone’s perspective. Now that many people are working from home, location may well be less important to you, and a move to an area with lower taxes and real estate prices might be in order.
Consider Your Finances
If you want to sell your home and buy a new one, you will need clean credit and savings in the bank. While interest rates are at record lows, you will only be able to qualify if you have a clean bill of financial health. Many families have used savings or retirement funds to survive 2020. If you are among them, you may need to lease an apartment or home while you recover and build up a nest egg. Whatever the case, it is important to get a clear picture in order to make the decision about selling your home.
The next questions are “How much will it cost to sell your home” and “How much could you comfortably pay for housing each month”.
To get a realistic picture of the costs and benefits of selling your home, find a realtor or contact a real estate investment firm, such as ZVestors. The real estate agent commission is by far the biggest seller expense. In Washington, closing costs including agent commissions and sales tax averages $28,869, according to the popular real estate site, Zillow. These fees usually equal another 8-10% of your home’s sale price.
Preparing your home for sale will include up front expenses in addition to the closing-related expenses above. You will need to budget for items like carpet cleaning, interior painting, and small repairs. Your real estate agent may also recommend exterior changes to increase “curb appeal” that include lawn care, new plants, and painting. Be sure to make a complete list and estimate your out of pocket expenses for each so that you can fairly evaluate the real cost of selling.
If you are able to sell your home, consider how much you can reasonably spend each month on housing and related budget items, such as taxes, utilities, maintenance, and homeowner association fees. The 28% rule for mortgage spending is the largest amount you should consider, so what will a
Consider Your Timeline
If you have enough savings and income, you can take your time to do a thorough analysis of the market, make needed repairs and improvements, and let your home spend enough time on the market to draw your asking price. You should be prepared to wait up to six months or more to find a buyer. You may even want to wait until the end of spring or summer to list your home, since demand tends to be higher then, which could draw out your move significantly.
If time is not a luxury for you, you may want to choose a different approach. Real estate investment firms can buy your house quickly, but you will want to choose a firm that is responsive. Does the firm have a professional webpage? Is there a contact phone number that directs you to a person? Do they have reviews or testimonials on their website? And are their policies posted and clear?
ZVestors, <zvestors.net> buys property in the Washington DC Metro Area, Maryland, and Virginia. Most sales can close in a matter of days after a customer accepts an offer. ZVestors pays cash for homes and eliminates the need for upfront expenses, fees, and commissions. We also cover moving costs to help you get into a new home with more cash in your pocket.
To learn more about ZVestors, visit them online at www.zvestors.net. You can also call 703-259-0570 and talk to a team member about buying your home.
About ZVestors
ZVestors is a real estate investment company that buy houses for cash, as-is. ZVestors will make an offer to buy your house for cash if your property is in the DC metro area, Maryland or Virginia. We are committed to making the process of selling your home simple and straightforward, and our buying agents take building relationships with clients seriously.
The buying agents at ZVestors www.ZVestors.net can give you honest, reliable feedback on your home’s value. Call (703 259 0570) or email (info@ZVestors.net) us today. There is no pressure, no listing fee, and our team is happy to build your offer right away.