4 Signs It Might Be Time to Sell Your home

Making the decision to list your home for sale should not be taken lightly. It is such a significant decision, in fact, that many people stay in their home when it no longer makes sense for them.  How do you know when you should stay or you should go?  

A move would make good sense financially.

Unless you are planning to move into the rental market, selling your home means that you must be ready to buy a new one. If you do not have to move due to other factors such as a job or lifestyle change, a voluntary move can wait until your financial situation is secure. Some signs that you are financially ready to make a change include:

• You are out of debt.  When you have paid off all non-mortgage related debt and have an emergency fund in place, you are in an excellent position to make a move.
• You have equity on your side. If you have been in your home for several years, or even decades, you should have some equity built up in your home.  Use this equity to reduce the cost of your next purchase.
• You have a 20 percent down payment saved. Whether this down payment is in the form of cash on hand or equity in your current home, having a 20 percent down payment ready will help you avoid paying for private mortgage insurance (PMI) and can save you thousands over the course of your loan.
• You can easily afford the cost of a move. Moving is not an inexpensive endeavor.  From boxes and packing tape to the man hours needed to actually move your belongings from place to place, the costs can add up. According to the U.S News and World Report, the average in-state move in 2014 cost $1,170 while the average state to state move cost nearly $6,000.
• You can afford the repairs and refurbishing of your home.  Likewise, getting your current home ready for sale is not devoid of costs.  At a minimum, you should expect to pay for painting, rug cleaning, and landscaping, whether you hire a professional or do it yourself. If your home needs significant repairs, you be required to fix these prior to closing with a potential buyer.

Your Home No Longer Fits Your Life.

As you progress through life, different events change your housing needs. Perhaps that cute two-bedroom bungalow you bought ten years ago was perfect for your life when you were single, but now with a spouse and a dog you are starting to feel a bit cramped. Maybe you accepted your dream job and it came with a less than stellar two-hour commute. Or you find as you get older that you despise winter, yet you live in a cold climate.

All of these situations make listing your current home and finding a new place a very attractive option. Life changes over time, and often the home that suits that life will change as well.

You Anticipate Little Return on Improvements

One reason people renovate their homes is to increase their property value and build equity.  Major renovations, such as kitchen and bath remodels or adding bedrooms, typically offer an excellent rate of return. However, if you would like to make these changes to your home but you anticipate little return on your investment due to market conditions, it may be time to list your home and look for a home that already suits your tastes and needs.

Likewise, if you plan to sell your home in the next few years anyway, then it may make better financial sense to hold off on major renovations, list your home now, and save your available cash for a future down payment. Generally, it is true that kitchens and baths sell homes, but sometimes homeowners see better returns on their investment if they stay in the home for a few years after an expensive remodeling project.

The Market Is Red-Hot

The best time to sell a home is when you can get a good deal on your next purchase.  When interest rates are favorable, not only does it make your next purchase financially advantageous, but it makes your current home more sellable. Buyers flock to the market when interest rates are low, bringing potential buyers to your doorstep.  

The decision to sell your home can be complicated. Talk to a trusted real estate professional.  These seasoned experts can guide you through complicated factors such as staging and setting a fair price to ensure you protect your investment while getting the best price you can for your home.