Consider all possibilities when selling your home (2)

REASON FOR SELLING #6: Change in your living circumstances.

Alternative Solution: If you are experiencing major life changes you could consider selling your home at a later date.

Pros: Sudden illness, a family mourning, or marriage breakup is stressful and can trigger a rethink in your selling position. Rather than be rushed, it may make more sense financially to hold-off selling right now. This is especially true if the real estate market is depressed. A marriage breakup could require you to refinance to pay off your partner's share of the equity in the property.

Cons: If the market is buoyant and near its peak, a delay may cost you dearly especially if there is a sudden downturn.

Consider all possibilities when selling your home

Reason #4 for selling your house

Need less space than is in your current home.

Alternative Solution: Renting out part of your home could be an option. Alternatively you could rent out the entire house and buy a smaller house to live in..

Pros: If local property values are on the rise it might pay to not sell your home right now. By renting your home out you might gain some tax benefits and be able to claim rental expenses.

Cons: Becoming a landlord takes some work and can have its problems. You will need to find good tenants and keep the property in good renting order. You may need to consult a tax advisor, carry liability insurance and you will be required to keep good financial records.

Reason for selling #5:

Escalating costs of keeping your current home.

Alternative Solution: Again renting out part of your home could be an option. You could buy another house in a less expensive area.

Pros: If the property market is on the way up, your home might be worth holding on to as a longer-term investment. This is especially so if you are considering buying in a lower-priced neighborhood. By not selling you'll also save on real estate costs.

Cons: You will need to be in a position to carry another home loan as well as your current mortgage. Also, by waiting to sell, you may be disadvantaged when the market and prices level off.

When selling, consider all possibilities

REASON FOR SELLING #1:

Expensive monthly mortgage interest payments.

Alternative Solution: Refinance your current loan.

Pros: If you have owned a home for several years and have not refinanced, you may be able to refinance at lower interest rates and significantly reduce your monthly payments.

Cons: Refinancing essentially resets the clock on your loan. This may cost you money over a period of time, however it is worth doing some calculations.

REASON FOR SELLING #2:

No money available to upgrade your home.

Alternative Solution: Refinance or consider applying for a home renovationloan.

Pros: Renovating and improving your home can increase its market value. This could prove to be a good investment for when you do decide to sell.

Cons: Increasing the value of your home may also increase the amount of property taxes you pay (depending on the laws in your country).

REASON FOR SELLING #3:

Need more space than is in your current home.

Alternative Solution: Consider remodeling existing home rather than buying a new one. A more open-plan style may provide more living space. Consider enlarging, or adding, a bedroom or bathroom.

Pros: Remodeling should improve the resale value of your home. It will also save you agent's fees and other costs associated with moving. You may need to use your home equity to finance the project.

Cons: Remodeling may mean an increase in the property taxes you pay. There is also the danger of over-improving your home. Some people fail to recoup their investment when they come to sell.

What are the alternatives to selling your property?

Homeowners faced with financial or personal problems sometimes sell their home for the wrong reasons. The Truth is, they might have been better off, had they thought more about their situation and considered some alternatives, without selling.

That's why before putting your house on the resale market it would pay to: think not only about why you are selling, but also consider the alternatives and carefully weigh-up the pros and cons to selling.

When you are selling a property, being in a state of indecision can be very exasperating and can cause needless stress and anxiety.

Not making a decision, or making the wrong choice, also has its downside. Don't only think about your reason for selling -- think about the alternatives -- then consider the pros and cons before you rush out of your house and put it on the market. And remember; regardless of your reason for wanting to sell your house, it usually pays to talk your ideas through with a financial advisor.

Be careful of what you say to a possible buyer

Although you should always be honest - by saying the wrong thing, or by having a simple "slip of the tongue", it could cost you dearly. You will need to choose your words carefully.

Decide how much information you are willing to give to a buyer without revealing too much, or misleading, or deceiving the agent or the homebuyer.

How desperate are you to sell your home?

Both the real estate agent and the homebuyer know that your level of motivation will be the driving force in the way you manage your house sale. They will want you to reveal how urgent the deal is and how negotiable and flexible you are with the sale of your property.

Are you desperate and willing to sell your home at any price? Have you already made a conditional offer on another house? Are you relocating to start a new job in a new town? Have your family status changed? Those are the types of questions that can reveal how motivated (or desperate) you are when you want to sell your home. They can have a big influence on the final outcome in terms of the conditions of sale and the negotiated price for your property.

That's why it is really important to decide exactly what you are going to tell a real estate agent or a potential homebuyer when you put your home on the market. Decide exactly how motivated you are to sell, before you put your property on the market. Think of how you are going to answer each and every question before they gets asked.