If you are wondering “should I sell my house?” you need to think about these things first to learn when it is the right time is to sell.
Determine Why You Want to Move
Before you decide you want to sell, do you know your goals?
It’s important to consider your wants, needs, and finances to determine your goals for selling.
For example, do you want a larger home?
Do you want to downsize?
This will help you get started as you think about selling especially if your needs for selling your home outweigh your wants.
There are times when you need or want to sell.
These situations include:
Significant income decrease
Family size change
Living in an unsafe neighborhood
Too congested or don’t like current area
If you are experiencing a major life change, you may need to sell.
Otherwise, you may just want to sell.
Setting your goals ahead of time will help you determine if you want to sell and how quickly.
Having Equity in Your Home
You may want to figure out if you have any equity in your home, which is the value of your home minus the remaining balance on your mortgage loan.
For example, if your home is worth $200,000 and you owe $150,000, you have $50,000 equity in your home.
If you owe more than your house is worth, you may want to wait to sell.
Even if you break even on the sale, you may want to wait unless you financially have to in cases like facing bankruptcy or foreclosure.
You may wonder how much equity is enough.
You want to have at least enough to pay off your current mortgage, and if you are looking to buy another home, you may want to have an additional 20 percent for a down payment on your next home.
Having 20 percent for a down payment saves you from needing private mortgage insurance (PMI), which will save you hundreds each year.
You Can Afford to Move
There are more costs than paying off your mortgage when you sell your home.
You also need to consider closing costs if your buyer requests them.
Moving expenses can easily run well over $1,000, so you need to be able to afford these expenses.
If you don’t have enough for these other expenses even after you sell your home, you may want to wait to sell your home until you can save up some money to cover these costs.
Along with the moving costs, you also need to determine your costs for your new home.
If you are looking to purchase a new home, make sure the new home fits in your budget.
You want to try to keep your mortgage payment around 25-35 percent of your take-home salary to give you enough money for other expenses.
All Projects Are Complete
Before you put your house on the market, you need to wrap up any remodeling or renovation jobs.
These small projects can be a major investment.
Talk to your real estate agent.
He or she may have some other ideas of projects you should complete before listing your home.
These can be simple projects like painting a room, replacing light fixtures, or upgrading the sink in the kitchen or bathroom.
You probably shouldn’t start a large renovation, like redoing your bathroom, before selling your home because your tastes may be different than the potential buyer.
If you need to do large repairs such as replacing a furnace, you may need to focus on those projects before listing, and this means financing and costs.
You Understand the Market
It may be hard to predict the housing market, but you want to make sure the market is in your favor.
Currently, rent prices are rising and mortgage rates are still low.
This means that the market is favorable in most areas.
It’s all about supply and demand.
If there are not many houses on the market in your area, it may be a good time to list.
You may be able to get more for your money.
If you have a starter house, it may be a good time to list because the market is especially hot in this area.
You can ask your real estate agent about the best times to sell.
Find out how long the average house sits on the market.
If it is less than 30 days, it is a good market to sell.
Be Prepared for the Sale
Before you can get too far, you need to start working with a real estate agent.
Your agent can help determine what your home is worth and if the market is favorable for your home.
You will need to work on any needed repairs and make your house presentable to buyers.
This means you may need to declutter, paint, rearrange, and make it less personal.
You want your home to look its best to entice buyers.
You will need to prepare yourself for showings, which means you will need to keep your home clean and be ready to leave for showings.
You will also have to prepare yourself for comments from potential buyers about why they don’t like your home along with possible lowball offers.
There are other ways to sell your home.
If you need to sell quickly, you may consider the cash for houses option.
This is when you sell your home to a wholesaler for an established price.
Still, Wondering Should I Sell My House?
The decision is yours.
You know your financial situation best, and know if your current home does not meet your needs.
You can talk to your agent to get more information, so you can answer the question “should I sell my house?” with valuable insight such as market conditions and the value of your home.
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