How to Know It’s the Right Time to Sell Your Home
Have you been thinking about your next home or looking at real estate listings online? It might be that it’s the right time for you to move. But make sure you’re really ready to sell before you put your home on the market.
There are a number of important things to think about, such as the market itself, your specific requirements, and your finances. This article will show you some clear signs that it’s time to sell your home and that you’re ready so you don’t make an expensive and emotional mistake.
Your Property Is the Wrong Size
It’s not uncommon to outgrow your current home and need to move to a larger space. According to a poll by Neighbor, one in four Americans move because they outgrow their current house in less than two years. It’s very usual for young families to settle into a modest house, only to outgrow it with the birth of their second child.
Or perhaps you find it’s the other way around, and rather than being too small, your home is now too big. Perhaps your children have grown and left home, and a smaller place would be easier to take care of, not to mention cheaper to run. If this is the case, downsizing makes a lot of sense, especially if you also want to free up some money for your retirement.
You’ve Built up Positive Equity
Homeowners who have been making their mortgage payments regularly for five years or more may have amassed a sizable amount of equity. To determine if you are financially prepared to sell, equity is a key consideration.
Your equity is how much you gain (or lose) when the amount you still owe on your mortgage is subtracted from how much your home is worth right now on the market. Use a professional real estate agent to help you determine what that figure is.
The proceeds from the sale of your home should be sufficient to cover the down payment on your next home, as well as moving and settlement expenses. When equity is negative, selling the property could make the situation even worse.
Your Home Is in Good Shape
Do you look after your home well? Houses that are in good shape sell better than ones that are in bad shape. If you’ve been doing regular maintenance, your home is likely in good shape.
To get your home ready to sell, you should only have to do small things like paint, fix nicks in doors or cabinets, clean carpet stains, and maybe do some landscaping. But if your home has major problems, like a leaky roof, broken plumbing, or a cracked foundation, you should fix those things before putting it on the market.
Don’t hurry through this or put your house on the market before it’s ready. You might get an offer, but the buyer can easily back out of the deal if a home inspection finds major problems. This is a waste of time for both you and the buyer.