It’s a big decision to sell a property, and sometimes it can be tricky to know whether a sale is the outcome you’re after or the one that will serve you best in the long run.
If you’re undecided about whether you’re quite ready to sell, here are five essential questions to ask to make the decision-making process easier.
Why am I considering selling?
There are numerous reasons people choose to sell a property, including upsizing, downsizing or a change in your personal relationship status.
Perhaps the property you have no longer meets your needs, or you’re moving to a new location and are seeking to sell so you can purchase elsewhere.
In some instances it’s obvious you need to sell your existing property to realise the capital you require to achieve that aim.
But in others, it’s not so clear-cut. Perhaps you’re in a position to retain the property you have while also purchasing another.
Understanding the reason why you’re considering selling and what you can achieve by doing so is critical to making the all-important decision of whether to hold onto a property or whether it’s time to let it go.
What’s my long-term goal?
Owning a specific property is often part of a longer term goal. It’s a stepping stone to the next stage of life.
That’s why it’s important to consider whether selling that asset helps you achieve your long-term aims, and these aims might be financial, personal and practical.
For example, perhaps you initially purchased the home as a first-time buyer looking to get into the property market.
Now, maybe you’re seeking to upsize or improve your living situation, and selling that asset helps you get to where you want to go.
What are the benefits to selling?
Like all big decisions in life, selling a property should be weighed up carefully, considering the benefits and the drawbacks.
In terms of selling, those benefits might include:
- Moving onto the next chapter
- Realising capital in your existing property that you can use elsewhere
- Letting go of a property that no longer meets your needs or is high maintenance
- Putting you in a better financial position
- Freeing you up from a mortgage
What are the drawbacks?
As you weigh up the benefits of selling, it also pays to consider the drawbacks.
Perhaps the existing property is in a region tipped to enjoy long-term capital growth, but that potential hasn’t yet been realised.
Maybe, you’re temporarily moving elsewhere and this is a property you would happily move back to in the future, when the time is right.
It’s also important to consider the costs involved in selling and how they impact your financial decision or the overall profit you’re likely to receive from that property.
Is there an alternative to selling?
In some instances there might be a better alternative to selling a property considering both your financial position and stage of life.
You might choose to retain the property and rentvest, where you rent out the property you own and rent a home in the area where you work or want to reside.
Or maybe you’re in a position to own multiple properties, retaining the original one and also purchasing a new one elsewhere.
If the property is in a high capital growth area, perhaps it’s worth holding onto a little bit longer and renting it out while you realise income from that home.
Talk to a trusted agent
If you’re on the fence about selling your property, it’s worth seeking the advice of a trusted real estate agent, who will walk you through the price the property is likely to achieve, the current market situation in that area and the options you have.
A great agent isn’t just interested in listing your property now, but in helping you achieve your long-term property aims whether the immediate outcome is selling the property now, or holding onto it and revisiting the idea of selling a long time in the future.