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6 Reasons For Selling Your Home – The Pros And Cons
by Noel Peebles Homeowners faced with financial or personal problems sometimes sell for
the wrong reasons. The Truth is; they might have been better off, had
they thought more about their situation and considered some alternatives.
REASON FOR SELLING No 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 No 2: No money available to upgrade your home. Alternative Solution: Refinance or consider applying for a home renovation loan. 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 No 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. REASON FOR SELLING No 4: 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 No 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. REASON FOR SELLING No 6: Change in your circumstances. Alternative Solution: If you are experiencing major life changes you could consider selling at a later date. Pros: Sudden illness, a family bereavement, or marriage breakup is stressful and can trigger a rethink in your position. Rather than be rushed, it may be 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. When selling a property, being in a state of indecision can be very frustrating and can cause needless stress. Not making a decision, or making the wrong decision, also has its downside. Think carefully about your reason for selling - think about the alternatives - then consider the pros and cons before you rush in and put your house on the market. And remember; regardless of your reason for wanting to sell your home, it usually pays to talk your ideas through with a financial advisor. © Noel Peebles. Market Leaders Limited. ************************************************** Home Selling Secrets Revealed. Totally independent tips and ideas on how to get top price selling your home, how to choose real estate agents, or advertise your house for sale privately. http://www.instantsellhome.com *************************************************
Noel is results driven and has built a reputation as a clear, thorough, strategic thinker. Over the years Noel has bought, developed and sold several businesses including fifteen years of "hands on" experience directing his own "highly successful" retail businesses. He now runs his own direct marketing company supplying marketing solutions for small businesses. Noel also operates a public self-storage complex best described as a “turn-key operation.” And, he's travelled extensively to over forty countries.
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