When is the best time to sell my home? Am I ready to sell my home?
It is no doubt every homeowner would always look for ways to live in better housing conditions. Whether it’s your financial situation, the market conditions, or simply just your basic needs, selling your home and moving to a new one might just be the better, if not perfect, option to take into consideration. When such thought comes to our minds, the question, “How do I know if I’m ready to sell my home?” would certainly come next. According to experts, here are some of the most important factors indicating that you’re ready to sell your home:
Among all other factors, having enough equity is the most important one. It is typically a homeowner’s most valuable asset. With enough equity, you wouldn’t have to worry much about the financial circumstances since you wouldn’t be leaving with an empty pocket.
The more equity you have, the better. According to The Balance, home equity is “an asset that comes from a homeowner’s interest in a home.” In other words, it is the property’s market value minus any liens attached to it. If you bought a home for $300,000 and owe $200,000 on your loan, your home equity is $100,000.
Once the property’s market value increases or the loan balance has been already paid down, home equity also increases.
So how would you determine if your equity’s enough? If you already have enough equity to pay off your current mortgage with enough left over to make a 20 percent down payment and cover any other closing costs you may have to pay out of pocket, then it’s about time to sell your home.
2. You’ve outgrown your home… is the best time to sell your home.
If you’re faced with circumstances such as expecting a child, family members are moving out or having to take care of aging parents, then you might want to consider selling your home. Try asking the question, “Does our home still fit our basic needs?” For a couple expecting a child, would your home be a safe and comfortable environment for the newborn? If you have kids moving out, do you think that extra space in your home would still be necessary? If taking care of aging parents, are the household conditions still elderly-friendly for them? If the answers to all these questions are no, then your home no longer suits your needs and selling your home might just be the best solution.
3. You understand the market and you know your market.
The housing market performance has always been unpredictable. However, the National Association of Realtors expects that existing homes would have a modest growth in 2018. Home sales are expected to grow around 7 percent, with a 5 percent increase on the median price.
Rising values of homes
Across the country, a huge number of renters are in search for a home to buy given that rents are up and mortgage rates are down. However, the difficulty of finding homes for sale within their price range remains.
According to CNBC, the shortage of low-priced or affordable homes continues. Homes priced $250,000 or less have decreased over time while the inventories of homes belonging to the million-dollar range are slightly increasing.
According to the data given by Trulia, homes with starter prices have increased by nearly 10 percent from the first quarter of 2017 to the first quarter of 2018. In addition to that, there has also been a decrease in available inventory of starter homes over the year, causing a 14.2 percent drop.
The abundance of home-buyers in your market
There are several factors which should be considered when determining the number of buyers that could be interested in purchasing your home. A number of sources have proven that more people buy homes during spring and summer seasons compared to fall and winter seasons. Warm weather creates a curb appeal to your home, which makes a great impression to potential buyers, and making them want to check the home’s interior.
It is important to also keep check of the other homes located in your area to ensure a certain number of potential buyers would be interested in your property. Assess how much these homes cost and compare them to the amount you’re planning to sell your home for. You can decide whether to sell your home or not during that time depending on the data and information you’ve accumulated.
4. You are financially capable.
All the other factors previously mentioned are very important in considering whether you’re ready to sell your home or not. However, if you’re not financially capable or you don’t have the money to pay for unanticipated costs, you’re not ready to sell your home.
Home sellers often assume that buyers are the only ones making the commitment and not them. Although the financial responsibility of the sellers during the selling process may not be as large, there will always be a cost. Once you’ve decided to sell your property, make sure you that have the ability to make payments for unforeseen circumstances along the way. Set aside a certain amount of money for any necessary repairs that may take place after inspections.
You should also leave a lump sum for moving expenses and closing costs. Upon selling your home, prepare to pay a commission, which is about 1 percent to 6 percent of the home’s sale price, to the real estate agents involved in the process. It’s highly suggested that you set aside about 10 percent of your home’s market cost to pay for all the costs involved in home-selling and other situations that could follow.
5. You’re ready to break emotional attachments.
When you’ve lived a part of or all of your life in your home, it’s almost certain that you would develop emotional attachments to it and have difficulty breaking them. Although it’s in human nature to become attached to your home, one sign of being ready to sell your home is a broken emotional attachment. If you’re truly ready to sell your home, you’ll be able to decide rationally and leave behind any nostalgic associations you have with your home.
If you can confirm these important factors, it is a strong indication that you’re ready to sell your home. Check your Home Value here to get started.
If you cannot find the answer to “When is the best time to sell my home” Ask one of our experienced and knowledgeable Eugene reale state agent to answer your questions.