So spring is here and you’ve heard inventory is low in the housing market. You hear talk that interest rates might go up. You start to wonder if now is the time to sell your home. Of course, I’d love to tell you “Sure!” but the truth is market condition isn’t the only factor on which you should base your decision.
You need to be “all in” if you are going to sell your home. It’s a painful process if you aren’t truly ready to go. So before you say “Let’s do it!” consider these 3 other factors to decide if its time to sell your home.
Consider your personal circumstances. One of the most common reasons to sell is that your house no longer fits your lifestyle. Maybe you got a new job and are getting tired of a long commute (check out my ratings for walkable neighborhoods! )Maybe your uptown condo no longer works with a baby on the way and you want a home in a neighborhood with good schools. Maybe the kids are grown and you are ready to downsize from your two story estate in South Charlotte. For empty nesters, selling a large home and paying cash for a smaller one makes it easier to enjoy retirement.
You’ve got some extra cash. Good. You’ll need it to move. First you’ll need to dump some dollars into your house to sell it. Then, you’ll likely hire movers to pack up your stuff. That costs money too. Then when you get to the new place you’ll realize you need everything from light bulbs to locks to towel racks. Oh and maybe a new welcome mat. And what if you want to paint a room or two? See where I’m going with this? The point is you don’t want to go in debt moving into a new home.
You have equity in your home. There are some cases where renovating your home is a better option than moving. You want to be sure that you have at least 20% equity in your current home because that gives you the down payment you need for the next one. 20% is the required amount of down payment if you want to avoid private mortgage insurance (PMI). That could save you hundreds of dollars a year.
By the way Money expert Dave Ramsey recommends keeping your monthly payment to 25% or less of your take-home pay on a 15-year fixed-rate mortgage.
One more thing… if you don’t have a realistic idea of what your home is worth, call me and I’ll give you a home evaluation to give you a sense of a ballpark asking price based on the market.
There’s no perfect formula for when to sell your house. Finding an agent you can trust to provide you with honest advice is key. If you are thinking about saying ‘Let’s do it!”, I’d be happy to talk you through the process of selling your home to see if its right for you right now.
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