6 Questions to Ask Yourself Before You List Your Home for Sale

The decision to sell your home, recreation property or rental investment is an important one. Not only is it one of your most valuable assets, but it may also be a strong emotional attachment. So, in deciding if you are ready to sell you need to consider both your financial situation and your personal life circumstances.

1 – Are you emotionally ready to sell your home?

  • Are you ready to put in the work to prepare your home for sale?
  • Are you committed to keeping your home “showing ready” for as long as it takes to sell?
  • Are you ready to hear feedback from potential buyers – both positive and negative?
  • Are you prepared for honest negotiations over what buyers perceive the value of your home to be?
  • And, most importantly, are you ready to move out, move on and leave a place full of memories?

If any of these questions give you pause, then it may not be the right time – and that is ok! But, if you answered yes to all of these questions, you are in a great mind frame to sell.

2 – Are you financially ready to sell your home?

It is not only purchasers that need to be financially prepared but also as a seller you need to consider your financial situation as well.

As a seller, you need to determine if you have enough equity to sell your home. At a minimum, you want to have enough equity to pay off your current mortgage and, if you are planning to purchase a new home or property, enough for the down payment. Your goal should be to make enough profit to cover the costs associated with selling and/or make a larger downpayment on your new home.

3 – Are you prepared for the costs associated with selling?

You need to make sure that you are accounting for all the costs associated with selling your home. Some of the costs you need to consider include:

  • Pre-payment penalty on a mortgage
  • Taxable capital gain for investment properties
  • Real estate commissions (plus 5% GST)
  • Lawyer Fees
  • Accounting Fees
  • Adjustments for expenses (property taxes, strata fees, etc.)
  • Movers, Cleaners, Storage, etc.
  • Minor home repairs and updates

4 – Have you reached out to your realtor to get a sense of the local real estate market?

As an experienced, local realtor I will help you understand the current market trends so that you can make sure your decision to sell makes financial sense. It will also give you an idea of what you can expect your experience to be like throughout the selling process.

I will also give you advice on how to prepare your home for sale in order to ensure you receive top dollar for your home

5 – Do you have a plan to prepare your property for sale?

You have assessed the value of your home and determined that now is the right time to sell. Next, you need to put a plan in place to prepare your home for the market. A little time and money upfront can increase the final sale price of your home.

A few things to consider:

  • Staging
  • Decluttering and personalizing
  • Timing of minor updates (fresh paint, new fixtures, etc.) and repairs

Your home doesn’t need to be perfect but any issues could be flagged during the inspection and they could impact your final sale price. It’s a good idea to fix any noticeable issues ahead of time. Otherwise, you may need to list your home below market value or offer potential buyers credit towards fixing any problems.

6 – Do you have a plan going forward?

As you move forward, you want to make sure that you have worked through all the details in advance.

If you are planning to sell your home and purchase another, make sure you know what mortgage you will qualify for and have a plan for where you will live if your home sells before you have found a new one.

When it comes to selling your home, there are a lot of factors you need to consider and I am here to help you every step of the way. If you have been thinking about selling but are not sure if now is the right time, get in touch and I’d be happy to walk through the process with you.