Have you been daydreaming about your next house or browsing online listings lately? If so, it might be time for you to move. But before you put your home on the market, make sure you’re ready to sell. There are several important factors to consider, including market conditions, your housing needs, and your financial situation. There are also so many other reasons that it may be time to sell your home. Maybe you are being transferred, or a death or divorce happened. It could be that all the children are grown, and you need a smaller home. You may have a health issue and need to be closer to a relative. There are many reasons, financial and emotional, that lead us to sell our current home. Here are some telltale signs that it is time to sell.
Consider The Market
Housing prices and mortgage interest rates are fluid and may indicate it’s time to move on. It’s best to sell when the market is in your favor. You could stand to make a nice profit on your property. A few signals: the price per square foot for real estate in your area is increasing and the amount of time homes are staying on the market is decreasing. Maybe your area is now an especially hot neighborhood. If any of these are true, think about selling.
Is It A Seller’s Market?
A buyer’s market is when supply is greater than demand, the time when there are more people looking to sell homes than there are people looking to buy homes. A seller’s market is when the demand is greater than the supply. There are more people looking to buy homes than there are people looking to sell homes. It is still a seller’s market in 2022. The US housing market has only transitioned from a very hot sellers’ market to a moderate sellers’ market. Even if the market is cooling, the situation is still favorable to property sellers. A buyer may offer you a sales price you cannot refuse.
Is Selling Your House Due To A Personal Financial Crisis A Wise Decision To Make?
Many people keep their mortgage and household bills alive by depleting their savings, taking out loans from their retirement accounts, or taking on credit card debt. This is almost never a smart idea as the financial hole continues to grow. The best recourse may be to sell and find another home that is more affordable. Your monthly housing cost, including your mortgage, principal, property taxes, homeowners insurance and HOA or condo fees should not exceed 28% of your gross monthly income.
You’ve Outgrown Your Home
One of the biggest signs that it’s time to sell your home is if you just can’t see yourself living in that size of a space for much longer. If you’ve had children or your lifestyle has changed a lot since you bought the house (for example, if you’re now working from home and really need a home office), you’ve likely outgrown the space, and upgrading to a bigger home would surely up your quality of life.
You Don’t Want To Deal With Maintenance
Perhaps you don’t necessarily want to sell your home to buy a new one and instead want to be done with homeownership altogether and go back to renting. The average homeowner shells out $2,000 a year for maintenance services, not repairs, just for things like landscaping, snow removal, trash and recycling, and house cleaning. Being a homeowner is a lot of work. Perhaps you and your family no longer want to deal with the responsibilities of maintaining the home, which require time, energy, and money. You can also sell your current home and buy one that requires less maintenance. Or it may be time to just let the landlord worry about those expenses and the leaky pipes and property hassles.
How Much Equity Do I Need To Move?
To determine the amount of equity you need when selling your home, you need to know your reasons for selling. If you’re looking to relocate, then you will need about 10% equity. If you’re looking to upsize to a bigger home, you will need at least 15% minimum equity. The more equity you have, the better. Selling is not free! Remember that you will be paying a real estate agent, closing costs, and purchasing another home. You should stay in your home at least 5 years before even considering moving. Another consideration is capital gains tax on your profit from a home sale if you do not meet the qualification for a sale.
The Bottom Line
Although we hope these telltale signs that you’re ready to sell your house were helpful, the decision is up to you at the end of the day. As with most things in life, there’s never a guarantee that taking a leap, such as selling your house, will be a good move in the long run. Take your time deciding if you should sell and study the local home sales market. Contact a real estate agent to help come up with a price for your home. If you underprice your home, a buyer may get it too cheaply.
Contact us (859) 979-1508) for a free consultation!
About The Real Estate Company
Residential and Multi-family Realty Services for Lexington, Richmond, and Surrounding Areas. We close over 40 million in sales each year. Our love for Central Kentucky and our clients is the key to our success. We provide careful guidance, persistence, and savvy marketing to deliver results for our clients time after time.
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