Homeowners

Planning to Sell Your Home This Year? Make These Smart Preparations Now

Preparing early in the year for a home sale later in the year gives sellers something rare in real estate: time.

Indeed, before the spring market arrives with its busy showings and time-sensitive offers, the early weeks of the year give sellers a chance to step back and proactively make decisions that may affect home prices, timing, and profits.

“The decisions you make now will determine how smooth the process is later,” said Jimmy Welch, president of The Jimmy Welch Team, a real estate brokerage in Louisville, Ky. “And in this market, being ready isn’t optional. It’s everything.”

Indeed, sellers who use this window to get ready tend to list with more confidence and fewer surprises.

Here’s how homeowners can use the start of the year to set themselves up for a smoother, smarter sale in the year ahead.

Review financing options before starting home improvement projects

One financing decision many sellers overlook early in the year is how to pay for pre-sale home improvements without draining their savings. This can include things like a fresh coat of paint, making major repairs, or replacing appliances.

Homeowners may want to consider taking out a Home Equity Line of Credit (HELOC) to help pay for the improvements.

“Sellers often fail to consider the timing and effect of obtaining a [HELOC] to finance work prior to sale,” said Brandon Beatty, owner of Southern Hills Home Buyers in Dallas. “It’s essential to apply for a HELOC early in the year, as it can take weeks to get approved, and having instant access to flexible funds can bump up value without a full-on renovation loan.”

A HELOC frees up money for sellers to make improvements that appeal to buyers, thereby positioning the home ahead of the spring market.

Early in the year is also a good moment for sellers to revisit their current mortgage. If mortgage interest rates have shifted since you bought, refinancing your mortgage may lower mortgage payments or free up cash ahead of a sale.

Make a home selling plan before spending a dollar

Spending money on home improvements before putting a home on the market often feels productive, but it doesn’t always translate into getting more money for the home.

That’s why it’s important to come up with a plan with your real estate agent for how the home will be marketed and what sort of work will result in the biggest returns.

“Random updates add up fast—and often miss the mark,” said Roxanne Hale, associate broker at the Art House Team at RealtySouth in Birmingham, Ala. “Sellers regularly spend money in the wrong places while ignoring things buyers actually notice, and that can hurt your bottom line.”

“The common theme is simple: slow down early so you don’t feel forced into fast, expensive decisions later,” she said.

An early pause often saves sellers from regrettable last-minute choices.

Focus on low-cost preparations that homebuyers notice

Not every home improvement needs a contractor or a large budget. Many homeowners paint rooms, change out hardware on dated cabinetry, and mow the yard themselves. These small changes can pay off.

“If you’re planning to sell, a budget-friendly approach is to address deferred maintenance, purge unnecessary items, and do a good deep clean,” said Nathan Garrett, a real estate agent in Louisville, Ky., and owner of Realty Homes. “Tackle one room at a time to keep the momentum going. This low-cost approach often delivers the biggest return for the least amount of money spent.”

When completed early, improvements often help sellers view their home from the buyers' perspective.

Talk to your financial team before selling a home

Selling a home is rarely just about setting the right list price. Timing, taxes, and a buyer’s future home plans all play a role in the larger financial picture. You may be able to deduct some of these expenses from your taxes.

“It’s important to have a good real estate professional, mortgage person, and tax/financial advisors all in the same room when making moves to plan for interest write-offs, tax deductions, and what future refinances look like,” said Nick Ahrens of Nick Ahrens Real Estate in Broomfield, Colo.

Early conversations give sellers time to ask questions and adjust expectations before contracts and deadlines come into play.

Home sellers should avoid home inspection fatigue

Some home sellers use the early part of the year to deal with issues they’ve been putting off. This can protect you against surprises during a home inspection that can cause complications later.

“Note down any repair or maintenance task you have been avoiding, big or small, annoying or not,” said Liz Hutz, owner of Liz Buys Houses in Battle Ground, Wash. “If we fix these issues during the [slow months,] we can avoid home inspection fatigue when selling, meaning the buyers are less likely to ask for big credits.”

Addressing any problems that might pop up on an inspection on your own timeline can protect pricing and negotiating power later.

Understand how much you’ll make on a home sale early

Clarity comes from knowing how much cash you get from a home sale.

“Review mortgage balances, HELOCs, taxes, and insurance now helps set realistic expectations for what walking away actually looks like, especially when planning a move or a future purchase,” said Stephen Hachey, a real estate lawyer in Tampa Bay, Fla., at Florida Real Estate Lawyer.

That clarity makes it easier to decide when to sell, what you can afford next, and which offers actually work for you.

Talk to a mortgage lender before planning your next move

For sellers planning to buy a new home, financing decisions often come earlier than expected. That’s why it’s important to speak with a loan officer to help you determine your options, your budget, and next steps.

“The actual first step isn’t contacting a real estate agent, it’s talking to a lender about financing the next house,” said Matt van Winkle of Compass Realty in Austin, Texas. “Loan programs and requirements change constantly, and it’s actually much easier to qualify for a new house without selling your current one than it has been in the past.”

Some lenders offer programs that account for an upcoming sale, which may make it easier for you to sell a home and buy another one at the same time.