Real Estate

Consider all the hidden costs before upgrading

YOUR home is probably your most valuable possession, and the decision to sell will determine some important aspects of your future.

A spokesperson for the Real Estate Institute of Australia (REIA), said selling up – particularly in order to buy a more valuable property – could bring financial rewards and offered the chance for a new and potentially more rewarding lifestyle.
But the REIA suggests you consider the following before you take the final plunge:
Have you consulted with all members of the family about their feelings towards the home?
Make sure you haven’t overlooked any of its virtues and focused on its flaws. Have you considered the option of renovating? What about the substantial costs involved in selling a house?
Do you have a reasonable idea of how much your home is worth? Remember, most home-owners overestimate the value of their properties by 5 to 10 per cent.
If your house does not attract offers anywhere near the price you are asking for, what will you do? Will it be a case of ‘sell at any price’, or could you stay put and wait for a better offer?
Have you considered renting out your home and taking out a mortgage on your future property?
What if your old home is sold before you find a new one?
Have you explored what properties are currently on the market, and are you sure you can find one that is affordable, and an improvement on your present home?
You may incur several costs in the course of selling your home, such as your agent’s commission, and a fee for discharging your mortgage (if you have one).
Don’t forget there are a few other costs including fees for services, legal costs and removalists.
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