The decision to sell a home is often clear-cut due to a specific family need or job change. But sometimes home owners are on the fence and can envision happiness whether they move or stay. We’ve listed four signs to consider for each side: selling or staying. Examine how your situation compares to help make up your mind.
Four Signs to Sell Now
Your Neighbors Just Made a Huge Profit Selling
Most of the nation is experiencing an incredible sellers’ market right now. The time a home sits on the market is often days rather than months. And hearing what your neighbor just profited on their home sale can be enough to make a person start packing. Be sure to enlist a Realtor’s services to determine your home’s value. It’s true that a neighbor’s hefty profit can help boost yours, but get a personalized analysis from a professional to price your home. What you profit also depends on how much equity you have in the home.
Remodeling Won’t Significantly Increase Home Value
If your home is already in great condition with significant updates, it doesn’t make sense to keep pouring more money into upgrades that won’t see a huge return on investment. Even the most pristine house will have something in it that the buyer will want to change to suit her own tastes. If you or the previous owner have already invested in updates, your home may already be at a prime stage to sell.
You’re in a Financial Position to Upgrade
With mortgage rates still low, it’s a great opportunity to move to a more spacious home or one with more features and amenities. Realize that rates may not always be so low in a few years. If you have the income and savings to upgrade, moving now could be better than waiting.
You Have Too Much Upkeep
If maintaining your home is taking up too much time and money, it might be time to downsize to something more accommodating for your needs. People of all ages and lifestyles switch to lower maintenance living for a variety of reasons. Work with a Realtor to show you available housing options and help you get the best price for your current home.
Four Signs to Stay Put
You Don’t Have a Lot of Equity in the House Yet
If prices in your neighborhood have risen well beyond what you owe on your home then you may be able to profit nicely from a sale. However, if you’ve only been in your home a short time or are paying a higher-than-average interest rate, chances are that you haven’t built a lot of equity yet. Consider the costs to sell, move, and buy again. If nearly everything you profit from the sale goes back to paying off a loan with little equity, you may find the trouble to move isn’t financially worth it. Do the math first.
You Love Your Home
Sometimes a house is too good to let go even if you know you could make a serious profit selling it. If you can’t imagine living anywhere else at the moment and there isn’t anything significant lacking in your house, then be confident in the choice to stay. You can’t put a price on joy and security.
You’re in a Close-Knit Neighborhood that You Love
While a home provides many practical and emotional functions, the community where it resides is the icing on the cake. If you love your neighbors and your kids have great friends on the block, you might not want to give up a good thing, even if you do have a small list of changes you’d want in a new home. Treasure your family’s experience in your neighborhood. As lives change and kids get older, you can revisit selling another time.
You Need to Improve Your Finances Before Qualifying for a Low Mortgage Rate
If selling means giving up a low mortgage rate that you’d no longer qualify for in a new home loan, then it may be better to stay where you are. Sometimes family’s accrue unexpected debt or one spouse loses income. Things happen that make it difficult to upgrade to a new home, even if you’re getting by fine in your current one. Give yourself the time to rebuild financial health before selling and buying again.
Real Estate Term of the Week
Home Equity: The current market value of your home, minus what you owe. You’re looking for a positive number. Any gain comes from paying down the principal balance on your loan and an increase in market value over time.