Whether you’re gearing up to sell your home now or might be selling it in the future, there are important things to consider before starting the process. Here’s a quick guide for you.
Is now a good time to sell?
With house prices falling, you may be wondering if now is a good time to sell a property.
Unlike many people think, there’s no such thing as ‘the right time’ – just the right time for you. Importantly, the decision to sell depends on several personal and financial factors, and that’s what you need to think about first and foremost. Plus, remember: a well-presented, well-priced property is always likely to find an interested buyer, even when the market is down.
What would you like to achieve?
If you’re planning to sell, take the time to think about what you’d like to achieve.
Get an idea of the current market value of your home, and consider what you could do to get a higher price on the property (for example, with a well-planned renovation). You can ask a registered property valuer to complete a valuation, so you’ll have a ballpark figure to work with. Plus, they may also advise you on the return-on-investment you may get from your renovation.
Will you buy or sell first?
Ideally, you may want to sell your property and buy the next one at the same time. But this can be difficult to achieve.
If you sell first, you will free up any equity and have a clearer idea of your budget for the next one. The potential downside is that you may need to rent a home while you look for a house, as well as storage space for your furniture. And in a tight rental market, finding short-term accommodation is challenging. To give yourself more time to find a new property, you might try to negotiate a long settlement period on the sale of your home – but not all buyers would be on board.
Buying first also comes with its own challenges. It’s highly recommended you make your offer-to-buy conditional on selling your home. This way, if you don’t find a buyer for your home within the timeframe set out in the condition, the sale and purchase agreement on the next home will fall through – but at least you won’t be legally obliged to buy it when you may not be in a position to. If a long settlement period is not an option, you may look into bridging finance or increasing your current mortgage. Keep in mind that there are risks to these options, especially if your sale takes longer than anticipated.
Have you factored in all the costs?
Many people underestimate the costs of selling their home. So, make sure you budget for these (and more):
- The real estate agent fee
- Tax obligations (get in touch with your accountant or tax consultant to learn more)
- Renovation costs to prepare the property for sale
- Real estate marketing costs
- Building inspection reports
- Lawyer’s or conveyancer’s fees
- Moving costs etc.
Who’s in your support team?
Selling property can be complicated. That’s why you need all the professional help available: from legal support through to mortgage advice.
Agency and sale-and-purchase agreements are legally binding, so it’s crucial to consider your options carefully. A lawyer or registered conveyancer can walk you through the selling process, drafting and checking documents thoroughly before you sign anything.
If you’re not confident selling your property privately, a real estate agent can work on your behalf, for a fee. A good agent will know the local market inside and out, and what makes buyers tick.
Last but not least, make sure you get mortgage advice. When you’re buying and/or selling your home, having your finance sorted is a huge weight off your shoulders. And we’re here to help you every step of the way.
Get in touch
Thinking of selling? Please don’t hesitate to contact us. We can liaise with your lender and walk you through your options.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
Link Financial Group Ltd trading as Mortgage Link and Insurance Link FSP 696731 holds a licence issued by the Financial Markets Authority to provide financial advice. Please visit https://mortgagelink.co.nz/available-disclosure/ for more information and Disclosure information.
