The real estate market has slowed down a bit recently but it is still a hot market in historical terms. When you are deciding to sell, you need to go back to the basics and consider the following questions before selling your house.

1. Can you afford another home?
The proceeds from the sale are intended to buy a new home. But what if it is short and you have to borrow money? Will the mortgage interest on the new home be higher or lower than the existing one? When the interest on the new loan is higher, the next question is will the increase in monthly payments affordable?

2. Why are you going to sell?
Why sell? Is the seller relocating? Or just want to cash in while the prices are high. Cashing in is not a bad thing, but it might be unnecessary if the seller intends to stay in the same area for the next 10 to 20 years. Markets will bounce up and down, so the seller need not be overly concerned about the short term. Transferring may incur expenses that may dilute the proceeds from the sale. In the end, money made might not be worth the trouble.

3. What is the home worth?
Remember, the value of the home is set by real estate comparables and appraisals, not by what the seller personally think it is worth. Getting an objective understanding of the value gives the seller the ability to determine whether selling is a good idea or not. Will you as the seller really make money or not? Will you be happy with the income?

The decision to sell is a serious one. Real estate has dramatically appreciated in the last few years. Whether you should cash in on that fact is a question only you can answer. The above mentioned questions will help you as the seller if you will continue to sell or not.