Can I Afford to Sell My Home in Manteca?

Short answer: it depends on two numbers, not one. The first is what you'll actually walk away with after the sale, not the sale price. The second is what your next home will cost you each month. Get both on paper before you decide, and the answer is usually clear.

I'm Carolyn Cardoza, a Realtor and Broker Associate with Realty 1 Team in Manteca, California. I was raised here, and I've been selling homes here since 2007. "Can I afford to sell?" sounds like a strange question, since you're the one getting paid. But it's one of the most common worries I hear, because selling is only half the move.

Because the sale doesn't end your housing costs. It starts the next ones. Selling only makes sense if where you're going works for your budget, your timing and your life.

That's why the question isn't "what is my home worth?" It's "what will I have after the sale, and what can I do with it?"

Your sale price is the starting number. Your net proceeds are what's left after everything gets paid at closing. That usually includes:

• Your remaining mortgage balance, including any second loan or equity line.
• Escrow and title fees.
• County transfer tax.
• Agent compensation, which is negotiable. It always has been, and I tell every client that before they ask.
• Any repairs or credits you agree to give the buyer.
• Your share of property taxes and any HOA dues, split as of the closing date.

Before you list, ask for a net sheet: a written estimate of what you'll walk away with at a few different sale prices. I put one together for every seller, so the number at closing isn't a surprise.

This is the other half. Ask yourself:

• Will I buy again, rent, or move in with family?
• If I buy, what will my monthly payment be at today's rates? A lender can tell you.
• Am I moving up, staying about the same size, or downsizing?
• Am I staying in Manteca or relocating? Costs can be very different in another area.

If you're buying again, talk to a lender before you list. A pre-approval tells you what you can buy, and it lets you compare your next payment to the one you have now.

That's one of the biggest worries sellers have, and it's a fair one. When rates were lower, a lot of Manteca homeowners refinanced, and now they're afraid to give up that low rate. That doesn't mean selling is the wrong move. It means you plan for it:

• A larger down payment from your proceeds can bring the payment down.
• A smaller home, or a different area, can change the numbers.
• Sometimes the numbers say to wait, and that's useful to know too.

Decide from your actual numbers, not from fear.

California has a rule, Proposition 19, that can let homeowners 55 and older bring their current property tax base with them to a new home in some situations. For downsizers, that can make a real difference in the monthly cost. I'll cover how it works in its own article. For your situation, talk to the San Joaquin County Assessor's Office or a tax professional.

1. What is my home worth right now?
2. What will I walk away with after closing costs and my loan payoff?
3. What can I afford for my next home, and what will the payment be?
4. Does selling make my life easier, or harder?

If all four answers point the same way, you'll know.

How do I know what I'll walk away with?

Ask for a net sheet. It estimates your proceeds based on your home's value, your loan balance and your costs to sell. I'm happy to put one together for you.

Will I be able to afford another home after I sell?

That depends on your proceeds, today's rates and what you buy next. A lender can tell you what you qualify for, and I'll show you what that buys in the area you want.

Is it worth selling right now?

It depends on your goals and your numbers more than the market. Once you see both on paper, the decision usually gets easier.

If you're wondering whether selling makes sense for you, I'd be glad to sit down and walk through it with you, step by step. Tell me where you are with it, and I'll tell you what I'd do. No pressure here. I'd rather you get this right than get it fast.

I'm Carolyn Cardoza, a Broker Associate and REALTOR® with Realty 1 Team in Manteca. If you would like to talk it through, contact me. You can also read more about what your home is worth, selling your home or downsizing in Manteca.