Are you prepared to sell your home in Hawaii? You may have spent months deliberating over the significant financial decision of purchasing your home, but now you must weigh the significant financial, social, and emotional decision of selling.
Consider not only your personal circumstances, but also your financial condition, such as the amount of equity you have in your home, your ability to finance a new property, and all of the expenditures associated with selling. You should also be aware of the local home market and how seasonal changes may affect your objectives.
When will you be able to tell if you’re ready to sell? Here are a few questions to ponder:
What is the value of my Hawaii home?
The housing market in Hawai’i is competitive and low-inventory. Despite the fact that purchases in the Aloha state have increased dramatically in recent years, housing supply will inevitably limit sales and drive up prices in 2021. In recent years, billions of dollars in real estate investment have poured into the Hawaii real estate market.
The majority of real estate investment interest is concentrated in Honolulu. The amount of money invested is expected to increase. Most real estate professionals compare recently sold properties in your neighborhood that are comparable to yours to determine how much your home is worth. “Comps” is a term used to describe comparable homes. You can obtain an idea of the price range home buyers might spend for your house by comparing the sale prices of other comps.
When looking for comparable properties, take into account the number of bedrooms and baths, the home’s square footage, and any distinctive characteristics. The problem is that no two houses are alike, therefore you’ll have to modify for each specific feature; this is exceedingly difficult to do correctly for each comp. Fortunately, computers excel at this work. Estimate using the most recent market data for comparable homes with the help of an experienced real estate agent.
Have you built sufficient equity in your home?
If you owe more on your property than it is worth, which is known as negative equity, and you are not seeking to escape bankruptcy or foreclosure, now is not the time to sell. It’s also not ideal to break even on your home.
However, because Hawaii property values have been rising for several years, most homeowners have accumulated significant equity. As mortgages have been paid down and home values have increased, a perfect financial condition for selling has emerged.
Knowing how much equity you have in your home is an excellent place to start when deciding whether or not to sell it. You can determine if your equity will cover the costs of selling once you know “how much of your home you own.”
How much will it cost to sell my house?
Many individuals focus on the 5-6 percent that is normally paid in agent commissions when selling a home. The overall cost of selling a home, on the other hand, might be as high as 10% of the sale price. Seller concessions, closing expenses, repair costs, and housing overlap costs if you can’t time the sale of your current house with the purchase of your next are all examples of additional costs. Don’t forget to factor in the expense of your time and sanity.
Many lenders will require that your housing-related expenses do not exceed 28% of your gross income, and that your overall loans do not exceed 36% of your gross income, a guideline known as the 28/36 rule.
Is the market in the proper place?
While no one can completely foresee the housing market’s ups and downs, average selling prices, the average number of days properties are on the market, and current interest rates are all crucial factors to consider. A real estate agent can provide you with further information about the current seller’s market in Hawaii.
Am I working with the best real estate agent?
While you might try to sell your property on your own, it is much easier with the help of a real estate professional. If you haven’t bought or sold many homes in Hawaii, aren’t an attorney, or don’t have a lot of spare time or a sales personality, hiring a real estate agent to guide you through the process is highly advised. When selling a home, a real estate agent’s responsibilities include the following:
Providing guidance on necessary repairs and staging requirements
Choosing an appropriate price for your house
Increase the visibility of your home by marketing it.
Organizing showings for prospective buyers
Negotiating with potential purchasers’ offers
Managing the many paperwork and people involved, including as escrow agents, home inspectors, appraisers, and others.
Do I feel emotionally prepared?
Consider your emotional links to your home. Were your children raised there? Is it something you acquired from your grandparents? Do you have any priceless possessions?
Emotional attachments to homes and their belongings can lead to heartbreak and stress. When considering selling your property, keep in mind that potential buyers may not feel the same way you do about it and may even offer negative feedback. If you can appreciate the time you spent in the house and provide new owners with a location to make memories, you may be ready to sell.
Takeaways:
While life events such as a family milestone or a new job may prompt you to sell your house, there are many more variables to consider. Understanding your finances, timing, and selling strategy might help you determine whether you’re ready to sell your house. Estimate the value of your home with the help of an experienced Hawaii real estate agent.
Understanding how much equity you have in your house and if the proceeds from a sale will cover the whole costs of selling, moving, and possibly putting a down payment on your future home is a good place to start.
When it comes to deciding whether or not you’re ready to sell, timing is crucial. Looking at the average Days on Market for similar houses in your region will give you a decent idea of how long it will take to sell your property. You may also need to think about how market changes will affect your home’s worth and aspirations.