Whether you’re moving across the country or overseas, selling your home before a PCS can be a strategic move. In this comprehensive guide, you’ll learn why now is a great time to sell, the benefits of using home equity to buy your next home, and important financial and practical steps to sell your home quickly.
Why Now is a Great Time to Sell
With the real estate market experiencing high demand and low inventory in many areas, now is a prime time to sell your home. Low inventory means less competition for sellers, leading to quicker sales and potentially higher offers. Despite higher than usual mortgage interest rates, more buyers are entering the market, increasing the pool of potential buyers for your home. By taking advantage of these market conditions, you can maximize your home’s value and expedite the selling process before your PCS.
Benefits of Using Home Equity to Buy Your Next Home
Selling your current home before a PCS allows you to leverage your home equity to purchase your next home. Home equity is the difference between your home’s market value and the amount you owe on your mortgage. By selling your home at a profit, you can use the proceeds as a down payment on your next home, reducing your mortgage loan amount and potentially qualifying for better interest rates.
Using home equity to buy your next home offers several benefits, including:
- Increased Buying Power: With a larger down payment, you may qualify for a higher loan amount, allowing you to purchase a more expensive home or afford better amenities.
- Lower Monthly Payments: A larger down payment can result in lower monthly mortgage payments, freeing up more of your monthly budget for other expenses.
- Avoiding Private Mortgage Insurance (PMI): Putting down a substantial down payment can help you avoid PMI, which is typically required for borrowers with a down payment of less than 20%.
- Faster Loan Approval: A significant down payment demonstrates to lenders that you are a low-risk borrower, potentially expediting the loan approval process for your next home purchase.
Important Financial and Practical Steps to Sell Your Home Quickly
To sell your home quickly and efficiently before your PCS, follow these important steps:
- Price Your Home Competitively: Work with your real estate agent to determine the optimal listing price for your home based on market conditions, comparable sales, and your home’s unique features.
- Enhance Curb Appeal: First impressions matter! Boost your home’s curb appeal by mowing the lawn, planting flowers, and tidying up outdoor spaces.
- Stage Your Home: Make your home feel inviting and spacious by decluttering, depersonalizing, and arranging furniture to highlight your home’s best features.
- Market Your Home Effectively: Utilize professional photography, virtual tours, and targeted online marketing to showcase your home to potential buyers.
- Be Flexible with Showings: Accommodate potential buyers by keeping your home clean and ready for showings at a moment’s notice.
- Review Offers Carefully: Evaluate offers with your real estate agent, considering factors such as price, contingencies, and the financial strength of the buyer.
By following these steps and leveraging the current real estate market, you can sell your home quickly and make a smooth transition before your PCS.
