Eight things you need to do before selling your home
Category RealADVICE
Lots of advice gets handed out to people about to buy a new home, especially if they are doing so for the first time, but it's equally important for sellers to ensure that they are properly prepared before deciding to list their properties.
That's the word from Gerhard Kotze, CEO of the RealNet property group, who says the first thing sellers need to do is take a good look at their own financial situation, including income, savings and outstanding debts. "Then, if you're planning to buy another home, it's a good idea to consult a mortgage originator to ensure that you could qualify for a new home loan. Interest rates, deposit requirements and qualification criteria will probably have changed quite a lot since you obtained your existing loan, so a higher salary will not necessarily be all you need."
Secondly, he says, you need to make sure that your income tax payments are up to date. "SARS can lay claim to any part of the proceeds of a home sale that is necessary to clear or reduce any income tax amount in arrears, and that could leave you unable to proceed with the purchase of a new property.
"And thirdly, you need to research the local housing market with the help of a property professional who can provide you with the latest information about home sale prices in your area, market trends and the average time it takes to sell a home similar to yours. This information will be invaluable in helping you to have realistic expectations about your home's potential sale price.
"It should also enable you to estimate what you expect to receive from the sale of your home, taking into account how much you still owe on your existing bond, your agent's sales commission and your portion of the costs associated with obtaining a municipal clearance certificate during the transfer process. If you want to avoid penalties for cancellation of your mortgage, you will also need to advise your bank well in advance of your intention to sell your home."
Fifth, says Kotze, you need to consider what it will cost to prepare your home for sale. "It's definitely worth spending some time and money to enhance your home's appeal and increase its market value. But once again, you should consult your property professional about which home improvements are likely to be most important to potential buyers, and which to avoid at the risk of overspending.
"Then once your home is ready for viewings, the sixth step will be to set a market-related asking price and ensure that quality photos are taken to show it to its best abilities in online listings. After that, it will be up to your property professional to execute a marketing and advertising plan to achieve high exposure for your home, attract many potential buyers and achieve a sale as quickly as possible."
Meanwhile, he says, you need to think carefully about all the costs associated with buying a new home and budget accordingly. "These costs may include a deposit as well as a bond registration fee, legal fees and transfer duty, as well as actual moving expenses, potential renovations or furniture purchases. And if you plan to upgrade to a bigger or more expensive property, you should plan for higher property rates, home insurance premiums and maintenance costs."
Lastly, says Kotze, you should have a contingency plan. "Home sales and transfers are complicated transactions, so you should anticipate that there might be challenges or unforeseen expenses during the selling process. It's definitely worth it to have funds in reserve to cover unexpected repairs, for example, or additional rent you may have to pay if a transfer is delayed."
Author: RealNet
