Should You Sell Your Charleston Home Before You Buy—or Wait?

Should You Sell Your Charleston Home Before You Buy—or Wait?

If you are a current homeowner that wants to purchase a new home in Charleston, you're most likely asking yourself a question common to folks in your situation: Should I sell before I buy?

The answer to that question depends on several factors.

Your Personality

Just the thought of having two mortgage payments—even for a short period of time—can cause massive anxiety for some people. Even if your lender has assured you of a simultaneous close on the two homes, uncertainty may linger.

Then, there is the pressure to accept an unattractive offer just to ensure that the home sells in time. If you wait to buy, you'll have the luxury of being able to negotiate offers as they come in.

If you crave certainty, you should probably wait until the current home sells to take on the purchase process.

There are, however, those who deal with uncertainty better than others. If that describes you, then starting the purchase process before you sell your current home probably won't faze you.

Your Finances

Regardless of your personality, if you just don't have the money to support two mortgage payments at the same time, then you have no choice but to sell your home before you purchase another.

Further, if you need the proceeds from the sale of your current home to use to buy a new home, you'll need to wait until after you sell, or attempt a simultaneous close. (We explain that process below.)

The Market (Charleston is seller's market)

A seller's market is the ideal situation when you're selling your current home, but it can be difficult if you hope to purchase at the same time. In a seller's market—where there are few homes available and lots of buyers competing for them—sellers are in the driver's seat. With multiple offers coming in, homeowners are not likely to accept an offer that is contingent upon another home selling.

On the flip side, in a hot seller's market, homes that are in good condition and are located in decent areas will sell quickly.  If your house is among them, you take on little risk if you wish to purchase a new home before selling your current one.  Being aggressive and responsive with you offer is key.  That way you are not out bid for your new Charleston area home.

Ascertain if the current market caters to sellers or buyers before making the decision of whether to buy before your house sells. Your real estate agent, Michael Johnson Homes is your best source for this information.

Achieving the Simultaneous Close

Selling one home while purchasing another can be a bit of a balancing act. If you try to time the closings to occur during the same period, you run the risk of ending up with two house payments at once.

If you allow too much time between closings, on the other hand, you may find yourself renting a temporary home and, thus, moving twice.  I have helped those arrange for short-term housing arrangement for past clients.  Move you things once find temporary housing on any budget.

The ideal situation is to plan for a simultaneous closing, where both transactions occur on the same day. However, this process comes with risks, too. If anything should go wrong on the first transaction you could end up not being able to close on the second.

For the simultaneous closing process to go smoothly, it's important to choose the right buyers for your current home. How much do you know about their finances? How firm is their offer? What do you know about their motivation to purchase? How badly do they want the home?  Pre-qualification of prospective buyers is important.   Making sure they are pre-approve for a home mortgage or verify funds available is just one of the services I provide.

Since the process is a bit like a string of dominoes, and the buyer of your home is the lead domino, it's crucial to choose a buyer you know will consummate the deal.

The key to success is hiring an experienced, professional real estate agent like Michael Johnson. Your agent can guide you through the process and steer the transaction to keep it on course.

Thank you for reading my blog.  If you liked it, please feel free to "share" and follow.

Search Charleston Foreclosure and Short Sale Homes. DISTRESSED REAL ESTATE

CONSIDERING TO SELL YOUR CHARLESTON HOME OR CURIOUS WHAT YOUR HOME IS WORTH?  GET YOUR NO OBLIGATION AND FREE ONLINE HOME MARKET EVALUATION ESTIMATE.  BASED OFF TAX RECORDS OF HOMES THAT HAVE RECENTLY SOLD IN YOUR AREA.
IF YOU WOULD LIKE A MORE PRECISE MARKET ANALYSIS OF YOUR HOME WE CAN SCHEDULE AN APPOINTMENT TIME THAT WORKS BEST FOR YOU.  CALL OR EMAIL ME TODAY.  CONTACT INFO

For more Tips Click HERE

 SEARCH CHARLESTON & MT PLEASANT HOMES HERE 

YOUR FREE CHARLESTON OR MT PLEASANT HOME EVALUATION HERE 

CHARLESTON & MT PLEASANT HOUSING MARKET CONDITIONS HERE

What Counts as a Comp for Your Charleston Home?

What Counts as a Comp for Your Charleston Home?

From replacing a rusted out bathroom sink to laying laminate flooring, Americans are hooked on the DIY craze. Some things, however, are better left to professionals. Establishing your home's current market value before putting it on the selling block or pursuing a refinance is one of those things.

To determine its value, appraisers and real estate agents will compare your home (the "subject property") to those that have recently sold in the area (known as "comps"). They will adjust the comps' prices up or down, according to how similar each home is to yours.

Read on to learn how a home qualifies as a comp for yours.

Status

The market value of a home is, simply, what a knowledgeable and willing buyer will pay for it. This figure is reflected in the sales price of recently sold Charleston area homes.

Appraisers and real estate agents use the local Multiple Listing Service (MLS) database in their research, to look for homes that have sold within the past six months. Only real estate licensees that pay an MLS membership fee will have access to this database, so a DIY consumer will find it challenging to locate a full and accurate list of sold properties.

Location

Since location is one of the principal indicators of property value, appraisers and real estate agents seek sold homes that are in close proximity to the subject property. Some lenders give strict location requirements to appraisers, for example a comp in an urban or suburban area must be no more than one mile away, and rural comps no more than five miles away.

Real estate agents, on the other hand, have a little more leeway and will typically begin their research close to the subject property and then widen the area until they've found three comparable properties that have sold in the past six months.

Neighborhood characteristics that influence a home's value include:

Nearby parks

Proximity to shopping

Neighborhood condition

Traffic, airport or other noise

The quality of the school district

Number of distressed properties in the neighborhood

Declining values or oversupply of homes in the area

On or close to water and beaches

Proximity to downtown Charleston

Price Per Square Foot

You may see sold homes or homes for sale that list the price per square foot in addition to the price of the home. This figure takes into account only the home's square footage and nothing else. Because it fails to account for the diverse aspects and special features of the house, it isn't an accurate reflection of value.

That said, with all other aspects being equal, a larger home will most likely sell for more than a smaller home.

Condition

Deferred maintenance will drag down the value of a home. Deferred maintenance includes all of the items you have been meaning to fix, but never got around to. Examples include:

Leaky faucets

Cracked windows

Loose or missing hand rails

Structural damage

Overgrown landscaping

Dirty or damaged carpets or other flooring

The Process

Since it is unlikely that your agent or an appraiser will find a home that's identical to yours, he or she will need to make adjustments to the sold prices of the comps to account for the differences.

If the comparable home is inferior to the subject property, value is added to bring it up to par. Conversely, if the comparable is superior to the subject, value is removed.

Here's an example of how this works:

The subject property has three bedrooms, two bathrooms and a pool. The comparable property, located three blocks from the subject, sold three weeks ago for $387,500.

The comparable property has three bedrooms and two and a half bathrooms, but it doesn't have a pool.

The appraiser or agent will deduct value from the comparable for the lack of a pool and add value for the extra half bathroom. The amount to deduct or add depends on the value the local market places on items such as a pool or a half bathroom.

The adjusted price range of the comp will reflect the current market value of the subject property.

Determining a home's market value isn't rocket science, but it does require current, accurate information and some experience with the process. A professional real estate agent will not only determine the current market value, but will also give you tips on how to get top dollar for the home.

Thank you for reading my blog.  If you liked it, please feel free to "share" and follow.

Search Charleston Foreclosure and Short Sale Homes. DISTRESSED REAL ESTATE

CONSIDERING TO SELL YOUR CHARLESTON HOME OR CURIOUS WHAT YOUR HOME IS WORTH?  GET YOUR NO OBLIGATION AND FREE ONLINE HOME MARKET EVALUATION ESTIMATE.  BASED OFF TAX RECORDS OF HOMES THAT HAVE RECENTLY SOLD IN YOUR AREA.
IF YOU WOULD LIKE A MORE PRECISE MARKET ANALYSIS OF YOUR HOME WE CAN SCHEDULE AN APPOINTMENT TIME THAT WORKS BEST FOR YOU.  CALL OR EMAIL ME TODAY.  CONTACT INFO

For more Tips Click HERE

 SEARCH CHARLESTON & MT PLEASANT HOMES HERE 

YOUR FREE CHARLESTON OR MT PLEASANT HOME EVALUATION HERE 

CHARLESTON & MT PLEASANT HOUSING MARKET CONDITIONS HERE