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Before listing your home for sale, carefully consider why you want to sell the home and evaluate the current condition of the housing market in your neighborhood. Taking these steps will help ensure that you maximize the sale price of your home, whether you sell it today, next month or next year.

Should I Sell My Home?

It's difficult, if not impossible, to predict which way the housing marketing and housing prices will head. Instead, look at factors you can control when deciding whether to sell your home now or at some point in the future.

Reasons to Consider Selling Your Home:

• You have to relocate to a different part of the country
• You can no longer afford to pay all of the expenses (including the mortgage, taxes, insurance and maintenance) associated with your current house
• You have built a large equity position in your home
• Houses in your neighborhood are selling quickly and are selling at or close to the asking price
• Few homes in your neighborhood are on the market

Reasons to Consider Remaining in Your Home:

• Homes in your neighborhood are taking a long time to sell, or are selling for significantly less than the asking price
• Many homes in your neighborhood are on the market
• You don't have much equity in your home, and will lose money if you sell, just break even or only make a small profit
• You don't need to sell, but would simply like to live in a different neighborhood or have a home with different amenities

Also how flexible are you in pricing your home? If you price your home low enough, you will find a buyer in any market. If you're unwilling to discount the price of your home, it may remain on the market for a longer period of time, particularly if the real estate market in your area is depressed.

Is This the Right Time to Sell My Home?

There is no perfect time to sell your home. But certain indicators will help you determine whether it's a relatively better time to sell your home or a relatively worse time to sell your home. Consider the following:

• How many houses are on the market in your neighborhood and city? How long has the average house been on the market? How do these numbers compare to historical numbers in your area?
• Where are mortgage interest rates, and how do those rates compare to historical rates? The higher the interest rate, the more difficult it will be for people to afford homes.

Should I Rent Out My Home Instead of Selling It?

If you must move out of your home, but don't necessarily think it's the best time to sell your home, consider keeping it as a rental property.

Evaluate the supply of rental homes in your neighborhood, and the demand for rental properties. If the majority of residences in your neighborhood are rental properties, then you may have a more difficult time renting your home because renters will have a bigger selection from which to choose. If the supply of rental properties is smaller, renters will have less of a choice, which increases the likelihood that you'll be able to rent your home.

You should also take interest rates into account. If interest rates are high, fewer people will be buying residential real estate, which means that more people will be interested in renting a home. People are more likely to buy real estate when interest rates are lower, which means that fewer people will be interested in renting real estate.

Ask yourself whether you want to take on the responsibilities associated with being a landlord. You'll have to advertise and show the property to prospective renters; check references and credit reports; collect rents; promptly address any maintenance issues; and ensure that your renters are adhering to the terms of the lease. Alternately, you can hire a property management company to perform these jobs, but it will cut into your rental income.

Finally, analyze your finances to determine whether you can afford to buy a new home while still owning your existing home. Many home buyers use the money they receive from the sale of their prior home to cover the expenses associated with buying a new home. If you don't sell your existing home, do you have cash to afford a deposit, down payment and closing costs for your new home? In addition, many properties rent for less than the cost of the mortgage, property taxes, maintenance and insurance. Owners of these rental properties make money after factoring in the tax deductions and when they ultimately sell the property. Can you afford to cover the difference between the rent and the property's expenses?

Related Resources on Lawyers.com ^sm

- Find a Real Estate Attorney in your area
- Visit our Real Estate message board for more help
- Selling a House in Your State
- Listing Your Home for Sale
- Selling a Home FAQ