Deciding to sell your real estate is a daunting task, especially in these trying economic times. Many questions have to be answered prior to making the decision. Should you go through a Realtor? What is the fair market value? How will this affect you financially? Is this the best time?
The choice to go through a Realtor is the first decision that must be made. Some property owners have made the choice to sell on their own; FSBO (For Sale By Owner). This is done in an effort to leave out the "middle man" and thus retain more of the profits for you. As appealing as that may sound, it may not always be in your best interest; some liken it to being your own attorney and we all know the adage about that.
The benefits of having a licensed Realtor assist you are many. From doing the research needed to appraise the value of your property to ensuring that, existing loans are fulfilled to finding qualified buyers.
It is good idea to obtain a Realtor who is part of the National Association of Realtors (NAR). The association, which began in 1908 with a mere 120 members, has grown to a membership in excess of 700,000. The credentialing process is stringent and the comfort of knowing there is recourse through the association should something go wrong is invaluable.
A Realtor can assess what the fair market value of your property is. Some investigating on your part can be done as well. This can be done by researching what comparable properties in your area have recently sold for. You can also calculate how much it would cost to replace your property. Taking into account material and labor costs for any structures as well as the value of the land itself.
Obvious questions like what will be done with the proceeds from the sale need to be addressed. Will the income be invested in another property and if so, is it enough? How you manage your money currently will be an indicator of how any additional funds will be managed as well. Keep in mind that selling of property also has an impact on your income tax.
Lastly, timing can be a large factor in selling. The real estate market is certainly not immune to the recent recession and shift in the economy. As we have seen, many people lost their homes due to foreclosure. The unemployment rate is up and many can scarcely afford rent let alone a mortgage.
Selling real estate must be an informed decision. Knowledge is power and the more knowledge you have regarding your options the more power you will have in this struggling market.
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