Thinking About Selling Your Home? 5 Clear Signs You’re Ready
More than 646,000 houses were sold year-over-year in 2019; a 4.5% increase. How did these homeowners know they were ready to sell, though?
It’s not an easy decision to make. You need to feel sure before you put your home on the market. If you’re thinking about selling your home, taking your personal situation into account can help you make the choice.
Here are five signs it’s time to sell your home.
Whether or not it’s a great time to sell your home depends on your situation and no one else’s. By reviewing this guide, you can make sure it’s the right time in your life to make that choice.
Discover if you’re ready to sell your home by reviewing these five signs it’s time.
1. Equity Is on Your Side
One of the main ways to determine if you’re ready to sell your home is to make sure you’re financially ready.
For starters, make sure you don’t have negative equity. Otherwise, you’ll owe more on your home than what it’s worth.
Trying to sell your home when you have negative equity is called a short sale. While breaking even on the sale is better, it’s not the best-case situation. To avoid bankruptcy or foreclosure, don’t sell your home with negative equity weighing you down.
Instead, build your equity and make sure your home is worth more than what you owe on it. Paying down your mortgages will help increase your home’s value.
To determine your equity, take a look at your last mortgage statement. Find your current mortgage balance. Then, determine your home’s value.
The best way to calculate your home’s market value is to speak with an experienced real estate agent. They can run a free comparative market analysis (CMA) so calculate the value.
Then, subtract your current mortgage balance from your home’s estimated market value.
Make sure the sum is enough equity to pay off your current mortgage with a 20% downpayment left over.
Debt & Cash-Flow
If you’re thinking about selling your home, you also want to make sure you’re out of debt. Do you have cash in the bank?
When asking yourself, “Should I sell my home,” take a look at your finances. Have you paid off your non-mortgage debt? Do you have three to six months worth of expenses in an emergency fund?
If so, you’re likely financially mature enough to sell and purchase a home.
Before you sell your home, make sure you can afford to move into a new one, too.
For example, you might need professional movers to help. Make sure you can afford the cost of packing and hauling your possessions.
You’ll also want money to update your new home with a fresh coat of paint or other upgrades. Make sure you can afford those upgrades first.
You can work with a team of home buyers to sell your home quickly and get the money you need for a new home.
2. Your Lifestyle Needs Have Changed
You might start thinking about selling your home if your lifestyle has changed over the years. If your current home isn’t meeting your needs, it’s likely time to move.
For example, let’s say your family is growing. You’ll need an additional bedroom and likely another bathroom. You might also want a larger living room to accommodate everyone.
Meanwhile, parents with older children who are moving out might decide to downsize.
Empty nesters can sell while rates are low, find a smaller home, and invest the rest in their retirement.
Whether you decide to size up or down, don’t forget to consider the mortgage. You’ll need to find a mortgage that fits your budget to ensure you’re making a financially smart decision.
3. You Understand the Market (Enough)
While it’s impossible to predict the housing market, a little research can help you determine when to sell your home.
For example, new housing starts rose by 9% in October. Meanwhile, sales of new homes rose 5.4% in August and September. Home purchase affordability also improved by 6.5% as of August.
As fewer entry-level homes become available, supply decreases. Meanwhile, demand is going up, which increases prices. Knowing this, your home might be worth more than you realize.
The market is hot for a seller right now, especially for starter homes.
If you don’t plan on selling right now, make sure to keep an eye on the market.
Understanding supply and demand can help you decide when it’s time to sell your home.
4. You Have an Agent
The real estate market is unique and constantly changing. If you’re thinking about selling your home, you might want to think about hiring a real estate agent, too. They can help you navigate the market and key in on the best opportunities.
An experienced agent will also help you determine if a sale is the best financial choice for your family.
Their advice can help you make the choice that’s best for your budget. They can also:
- Help set a price for your home
- Note any upgrades or repairs that can make your home more attractive to buyers
- Help market your home to increase exposure in front of potential buyers
- Schedule showings with prospective buyers
- Advise you through the negotiation process
- Handle the paperwork
If you’re ready to sell your home, make sure you have a qualified real estate agent there to help.
5. You’re Emotionally Ready
Lastly, you want to make sure you’re emotionally ready to sell your home. While you’re thinking about selling your home, ask if you’re ready:
- To get your home ready for potential buyers
- For the negotiation process
- To keep your home staged/ready for tours
- To move out of the place where your family has made so many memories
Moving out of a family home is an emotional process. Reminding yourself that you’re moving onto a new stage in life can help.
Thinking About Selling Your Home: 5 Signs It’s Time to Sell
While you’re thinking about selling your home, review this list. Consider each of these signs before making your choice. That way, you can ensure that selling your home and making a move is the best decision at this point in your life.
Check out our Home & Garden posts for more helpful guides!
