If you watch the Food Network, you know all about mise en place – preparing and organizing all your ingredients before you begin cooking. Mise en place is important when you sell your home too – there’s a lot to prepare in advance. Before you get excited about listing your home for sale, make sure you’ve done the following:
- Created a budget, that includes the costs to buy and the costs to sell
- Interviewed REALTORS to find someone you trust – talk to friends, read online reviews, ask lots of questions
- Outlined your goals for both the sale of your current home and purchase of your next home
- Talked to your bank about any mortgage penalty you need to pay.
- Spoken with your accountant about any tax implications (for investment properties or your primary home if it is partially rented out).
- If your home is tenanted: you’ll need to consider the restrictions and implications of selling a tenanted home
- Considered how showing your home to potential Buyers will impact your lifestyle, in particular, your pets and kids. Where will they go when people tour your home?
If you’re also going to be buying a home, you’ll need to make sure:
- Your income taxes are filed
- Your credit report is error-free
- Your expectations for your next home are realistic: does what you want to buy exist for the price you want to pay?
- You’ve been pre-approved for a mortgage for a new home, with terms, interest rate and an amount that are satisfactory to you.
- You’ve talked to your bank to ensure you qualify for bridge financing. Bridge financing is a loan from your bank to ‘bridge’ the gap in finances when the closing dates of your current and new home aren’t the same. For example, if you take possession of your new home on October 8th and your current home closes on October 15th, you won’t have the downpayment needed for the new home until you get paid for your current home on October 15th. Bridge financing is an advance from the bank to help you cover that period of time.
Click here to read our First Time Seller Guide which details everything you need to know.