Hi and thanks in advance for any advice.
I'm looking into potentially selling our current home in GA, bought in 21 for 240k. Our current zestimate is around 350k, leaving a total equity of 140k on the absolute high end (we owe 210k on loan). We've lived in current house for 5 years, but have noticed that it isn't what we really need. We would like to downsize and potentially get some land. We have a few options in a comfortable price range, but to get there, we would like to sell the house as is.
My question is; would it be advisable to proceed with this? The equity would be used to clear debts, allow wife to be a SAHM, furnish new home, and give us a hefty safety net.
We've calculated on the extreme ends, even if we only get 320k from sale, we can make it work.
Posted by BTSykes
3 Comments
Talk with a few qualified local agents and, if helpful, an appraiser before relying on Zillow’s estimate.
Get realistic repair quotes, then compare the cost of doing the work with the likely effect of leaving it undone.
Buyer interest, offers, and your net proceeds may shift more than you expect, especially if you are located in an area that has/is shifting to a buyer’s market.
First of all, don’t look at the zestimate. It’s not likely to be very accurate. Get a list of SOLD comps in your area in the last 6 months, but preferably the last 3 months to determine your selling price. When I say comps, I mean houses in your neighborhood that are similar in age and size. Buyers don’t care even a little bit how much you need to make off your home. It’s is only worth what someone else is willing to pay. If I didn’t need to sell right now, I’d wait to next spring. The political landscape could be very different and people might feel more confident in buying.
The whole plan hinges on that 350k zestimate being real, which is the part I’d poke at hardest — on an as-is sale it usually isn’t, and buyers will price in every repair you skip. Your “even at 320k we can make it work” line is doing a lot of heavy lifting. What are actual sold comps looking like in your neighborhood right now?