Pay Attention to This Before Selling a House

manorscholar.com – selling house If you have the desire to sell your house and then move to another city, there are things that everyone should do before putting up a house for sale sign in their front yard because a place to live is a very valuable property investment. Here’s an interesting story about it. Also read: 6 Mistakes In The Property Business And How To Avoid Them

A young family bought their first house, then bought a car on credit and again increased their debt by buying furniture on credit cards. After a while his wife stopped working to take care of their baby. The family still has enough money to pay all the monthly installments. One day they fell in love with a new model house that was built not far from where they lived. The sales agent assured that the new house has a high property investment value and only costs an additional 2 million per month.

The family had no problem selling the house, but in order to apply for a new mortgage they had to pay off their car payments and other bills which left them with less financial standing to pay down the down payment for the new house. Because their income has decreased, the mortgage proposal was rejected, they have not been able to buy their dream property because their financial condition has fallen.

So before selling your property investment, namely the current residence, be sure to find out how to buy a new home. Pay attention to important matters relating to the following financial conditions:

Check your credit and fix any problems related to credit. You may have enough money to pay a down payment, but other bills such as credit cards, car payments, or other monthly bills must be paid off before applying for a new mortgage. Calculate the down payment and monthly installments, make sure you can afford it. Also read: How to Choose the Right Property Agent

Do the calculation of how much you want from the sale of the property, don’t let the investment value of the property go down compared to when you first bought it.

1. Do you have a mortgage penalty that can eat up a large amount of savings?

2. Determine the amount spent on sales commissions. Can you sell your own house without the help of a real estate agent?

3. Calculate closing costs.

4. How much will it cost to repair the house to maximize its selling profit.

Consider all the costs that may have to be incurred when selling the house, calculate the amount of the down payment, and see what type of property you can afford with your current financial condition. After doing all the calculations, you will be ready to sell your home which is a worthwhile property investment. Also read: Tips for Buying a First Home for Millennials and Newly Married Couples