Is now the right time to sell your home? Here are 5 steps

The U.S. housing market is facing unusual times. Mortgage rates are at their highest levels in years, precluding some buyers from entering the market. At the same time, the nationwide supply of houses remains tight. If you’re contemplating a move in the midst of these unusual market dynamics, here are five steps that can help you navigate the process.

Seek professional help

A top priority is to have a good handle on your current financial situation. This means having a clear idea of the value of your home and how selling it would fit into your financial plan. To help gain a holistic perspective, sit down with a financial advisor to discuss your current financial situation and concerns for participating in today’s market. Additionally, you may want to consult a real estate professional. Finding an agent through a referral from somebody you trust is a good way to identify a qualified agent. Don’t be afraid to interview multiple agents to find the right fit.

Determine the worth of your home

Local market conditions, based on the balance between housing supply and buyer demand, have the biggest impact on home values. Explore pricing on real estate websites, consider obtaining a formal appraisal, or discuss the matter with your real estate agent to help determine your home’s realistic value. Consider whether you can expect to sell the home for more than you owe on an existing mortgage if there is one.

Estimate the cost of selling your home

The sale price of the home does not reflect your ultimate net proceeds. There are costs associated with the process. These include realtors’ fees, typically amounting to 5%-6% of the sale price. Closing costs, which typically include a home inspection, appraisal fees and title insurance will eat up another 1% to 3%. If you need to make repairs to the home at some point in the process, that’s an additional cost. Finally, you may need to negotiate the price or provide other concessions to the buyer to close the deal. Keeping these costs in mind will help you attain a clear picture of the proceeds you can expect from selling your home.

Martin