If you are thinking about selling your Denver home, it’s important you are completely prepared for the process before you list your home. Remember, odds are you aren’t just selling your Denver home; you are also potentially buying a new home, or at least moving, and you will be going through a significant financial change. Before you sell your home, make sure you cover the pre-sale bases from preparing your home to preparing your budget as doing so will allow you to anticipate an easier transition.
Clean Up Your Credit
Even if you have paid off your current mortgage, you will want to get your credit status in check before you go to list your home. If you are going to be relying on financing to purchase your next home, maximizing your credit score and knowing where you stand before you begin your search will not only save you time, but will make your selection process much simpler. Order your credit report from the three national reporting agencies, Transunion, Experian and Equifax; you want to perform a comprehensive analysis on each one, checking for any mistakes, errors or credit bludgeons. You can take action to significantly repair your credit in just a year, so give yourself enough time before you list your home to prepare your finances.
Build Your New Budget
It is good practice to enlist a team of professionals to support your selling and buying processes, including an agent, a mortgage broker, a tax adviser and a financial planner. But before all that, you can save yourself valuable time you’ll need later on, as well as money and hassle, by preparing your own flexible budget. A flexible budget is a great tool that uses your current financial situation to plan for your future. Start by creating your current snap shot which includes: your monthly mortgage principal and interest repayments, your monthly utility costs for your current home, monthly costs of property taxes, insurance, and HOA fees, your monthly income, and your monthly expenses for everything not home related. As you begin to meet with brokers and agents, you can get a good ballpark figure for the value of your current home, and by using this number you can tailor your future budget to your needs. If you are looking to save money on your new home, you’ll want to plug your potential listings into this budget plan to see how much you stand to save.
Iron Out Home Issues
If you wait until the closing process to deal with your unknowns, you can wind up digging your deal a grave, so take proper precaution to avoid any derailing surprises. The good news about home issues is the earlier they are found, the cheaper and easier they are to prepare. Start by ordering a copy of your title report to make sure your home is free and clear of any liens or errors. Next, have a pre-sale inspection and appraisal done on your property well in advance. If the inspection reveals recommended repairs to your home, get them done now, because odds are the buyer will either require you fix them down the line, or they will use this as a bargaining tool to cut the price of your home.
The Denver selling process begins the moment you consider selling your Denver home. Make sure you have taken care of the above items before you start showing your home, to avoid the risk it will sit on the market growing stale.