Feeling the pinch of debt? Here's why selling could be your best option
Category General News
If financial stress is keeping you up at night, selling your home could be a surefire way to regain peace of mind. Rather than stretching yourself thin each month, parting with your property might be the key to reducing debt, relieving monthly expenses, and freeing up resources for the future. By making this choice, you give yourself room to breathe, rebuild, and eventually invest in a more comfortable living situation - one that fits where you are now and where you want to go.
Time for that "for sale" sign
The latest FNB Estate Agents Survey shows financial pressure-induced sales rose slightly to 21% of total sales in Q2. Cash-strapped homeowners do have an option in selling and for many, it can be a decision that will bring great relief.
Selling can provide an injection of cash, allowing you to pay off high-interest debts, reduce your financial burdens, and get back on track with your finances. Homeownership comes with significant monthly costs, including bond payments, property taxes, insurance, maintenance, and utilities. By selling, you can reduce or eliminate these recurring expenses, freeing up cash for more pressing needs.
Missing bond payments can have a long-lasting negative impact on your credit score and financial options. A planned sale can protect your credit and give you more control over your financial future.
Selling rather than sticking with a property you can no longer afford can open doors to other opportunities. Once your finances are stabilised, you'll have more freedom to invest in a home that better aligns with your current needs or other ventures that might enhance your financial well-being. Downsizing or even renting can be a welcome decision that will bring you great joy in the future.
Anyone with bills piling up knows how emotionally taxing financial stress can be. Selling your home can empower you to regain mental clarity and focus on future goals without the weight of financial strain.
And finally, selling your house to pay off a debt can even be one of the smartest business decisions you make. If the housing market is favourable, selling will allow you to maximise your home's value, reducing the risk of future depreciation and ensuring you make the most out of your asset.
Tips for selling when finances are tight
While buying a home can be a blessing, life can throw a curveball that can make it a challenging investment. The main point is to jump into action and take control of the situation when you're in financial distress.
1. Get the full financial picture: Before listing your home, assess your overall financial health. Calculate any outstanding debts, ongoing expenses, and future costs to determine what price range will truly help you regain stability. Rather than selling, you might simply need to cut back on expenses, secure a second income, dip into surplus funds if you have an access bond, refinance your bond, or look at renting out your property instead.
2. Consult a financial advisor: A professional advisor can help you make informed choices, such as whether selling is the best option, and how to allocate funds post-sale. Their guidance can prevent future financial pitfalls and ensure you're taking steps toward long-term security.
3. Make your peace: Selling your home, especially under difficult circumstances, can be tough. Try to detach yourself emotionally from your home and seek support from friends, family, or a therapist if you feel overwhelmed.
4. Work with the right agent: Your chosen property practitioner should have experience in selling a distressed property and approaching the situation with the empathy and urgency it needs. They should price your property correctly, market it well, and help you negotiate a good deal.
5. Be prepared for the expenses: Sellers can often be surprised by the costs involved in the sales process like bond cancellation fees, compliance certificates, estate agent commission, and clearance certificates. While accepting cash offers is ideal, you can also look into bridging finance to give you a cash advance.
6. Get your home into gear: Make small, cost-effective improvements that can help your home show well without significant upfront costs. A fresh coat of paint, decluttering, or minor repairs can boost the appeal and help you sell faster.
7. Plan your next step: Look at affordable options for where to live after the sale, whether downsizing, renting, or moving in with family temporarily. Planning ahead helps avoid last-minute costs or financial strain.
With these steps, you'll be well-prepared to navigate the sale and set yourself up for a more secure financial future.
Trusted agents in tough times
At Kellaprince Properties, we know that selling a home can be challenging even under ideal circumstances. When financial stress adds urgency, it's natural to feel overwhelmed. With our dedicated support and expertise, you can move forward confidently, knowing we're here to help you achieve your goals and make the process as smooth as possible. List your property today or reach out to our team to get started.
Author: Kellaprince Properties