Should I sell my house? That question may be bouncing around your head, and you may not know how to answer it. Selling your home is a major decision. If you do not time your sale properly, you could end up costing yourself a big chunk of change. But how can you tell if selling right now or waiting a bit longer is the right move? In this article, we will detail the numerous factors that matter when determining the right time to sell a home. Consider them carefully so you can make the right decision with your property.
The Factors That Determine the Right Time to Sell a House
It probably will not surprise you that several factors come into play when choosing the best time to sell a house. Some of these factors are ones you likely could have guessed, but others may not spring to mind immediately. In any case, you should account for all of them as you deliberate your decision.
The Way You Are Handling Housing Costs
Should I sell my house now? Many ask that question to find the right time to sell to maximize their profits. . For some homeowners, profitability is not the main reason why they are looking to sell. You may currently be in a situation where simply making ends meets is proving to be a real challenge due to the housing-related costs you need to pay regularly. Between your mortgage payments, taxes, and utilities, you may be barely scraping by. An inexperienced home buyer may not realize they are biting off more than they can chew. Now they are drowning in debt, and their only way out may be to sell, even if it comes at a loss. Some homeowners may prove stubborn and refuse to sell even if they cannot afford to stay in their current situation. It is easy to understand why they are reacting that way, but you should not follow suit if you ever end up in a similar predicament. Keep going in that direction, and you could lose your home altogether. Selling at a loss is not an easy pill to swallow, but it beats losing your property for nothing.
The Length of Time You Have Spent in Your Home
When you purchase a home, your expenses go beyond the list price. First off, you pay for closing costs. Closing costs typically include the appraisal fee, the application fee for your loan, insurance fees, and several other expenses. According to Nerdwallet, the expenses typically cost around 2 to 5% of the loan amount. In addition to the closing costs, you also pay your real estate agent’s fees. The interest you pay on your mortgage will also hike up your expenses further. Given all the expenses associated with buying a home, you may find yourself in a hole early on. Your new home may not be an asset yet. Most experts agree that a buyer should live in their new home for at least five years before selling to recoup their purchasing expenses. You do not need to wait that long if you do not want to but being patient will allow you to extract a greater profit from that transaction.
The Current State of Interest Rates
Homeowners should also account for interest rates when deciding whether to sell now or wait. There is a case to be made that you can sell your home whether interest rates are trending down or up. If the interest rates are trending down, you can sell your home now and purchase a new house for a relatively affordable price. If interest rates are soaring, you can capitalize on buyers looking to purchase as soon as possible so they can avoid sky-high list prices and mortgage payments. Remember, you will also deal with the conditions affecting your home buyers if you intend to go into the real estate market soon after selling. You can bide your time until interest rates go way up if you do not need to purchase a replacement home right away.
The Trends Affecting the Real Estate Market in Your Area
Keeping up with trends is always important when it comes to real estate. If you have kept your pulse on the market, you should know which specific cities have become more popular living destinations. In recent years, cities like Austin, TX, Boulder, CO, and Portland, ME, have become more appealing to people on the move. You should also check if your city has become a more popular destination for people looking to settle down. If it has developed that kind of status, there is a good chance the value of your home has increased significantly. Selling your home in that trendy city could become one of the best financial decisions you ever make. Time your sale right, and you could secure a purchase while your home’s value is at its peak. Of course, securing a sale at peak value is easier said than done. If the transaction goes slower than expected, you may not fully capitalize on the existing trends. You can avoid that potential problem by working with a direct home buying company. Direct home buying companies work quickly to close sales. They also give you cash for your home and ensure you can extract fair value from your asset. Simplifying the home selling process is possible if you work with a direct home buying company.
The Needs of Your Growing Family
Not too long ago, a two-story home with two bedrooms seemed big enough for your family. You and your spouse used one room while your toddler stayed in the other. It was a comfortable setup that worked for everyone. Right now, two stories and two bedrooms may not seem sufficient for your growing family. That could be the case if you had more kids. Your kids need their own rooms. Building an addition can provide extra space, but rules in your area may prohibit you from constructing what you truly need. Instead of trying to squeeze into your current home or making modifications that are temporary solutions at best, you may want to consider selling your current home and buying something bigger. If this is the current predicament you are in, you may be able to wait a while. Remember, your children are not getting any smaller. Moving into that bigger home will become a necessity sooner rather than later.
The Desire to Downsize
Selling your home so you can immediately move into a new home is justifiable, not only if you need more room for your growing family. It is also a move worth considering if you are downsizing. Downsizing becomes an option for older homeowners who no longer have children living with them. An older couple may find a massive four-bedroom to be excessive. Instead of letting all that extra space go to waste, they can sell their home and look for a replacement that suits them better. Opting to downsize also makes sense for older couples if they want a home that accommodates them more effectively. Getting around a smaller home is undoubtedly easier than navigating a massive property. You should also consider downsizing if you are retired and could use the extra money. The profits you realize from selling your larger home can allow you to live more comfortably during your golden years.
The Season for Selling Has Arrived
As we have touched on at various points throughout this article, timing plays an important role in determining the value of your property. There are good times to sell throughout the year. However, selling may be particularly profitable during certain months. According to this article from Forbes, the spring season is the best time for selling homes. Spring is the best period for selling because more energized and motivated buyers are in the market during that time. They likely waited out the winter to proceed with their plans, so they may be chomping at the bit to complete a purchase. March has emerged as the best month for selling, but you are still in good shape even if you wait until April or May. Selling during the summer season is also not a terrible idea. You could run into buyers eager to finish their move before the start of the new school year, and they may be willing to pay a premium for your property. Buyers are harder to come by during the summer months, but you could still get a good deal in a less crowded seller’s market. If it is already fall season, you should probably wait to make your move. You can keep your home on the market if you want but do not expect to be blown away by the offers you receive.
The Demands of Your Job
Moving is a necessity for many of us because of our jobs. You may have finally snagged that promotion you have been eyeing for a year, but you will need to move to a new city to lock down that position. Living in a new city may not have been part of your plans originally, but the whims of your workplace can change that in a hurry. The potential issue with selling your home in that situation is that you feel pressed into making a less than optimal deal. If you need to move to a new city in a hurry, you may not receive the best offer. The only saving grace is that the extra income you are getting from your promotion can help you pay for your new home faster.
The Home You Are Selling Is Part of Your Inheritance
Recently, you may have become the owner of a new home that was passed down to you by your parents or other older relatives. So, what should you do with that inherited home? Moving into that new home is always an option, particularly if it is a property that means a great deal to your family. Renting out an inherited home is also worth considering if the property in question does not possess a lot of sentimental value. You can also sell an inherited home if you are so inclined. Coming into possession of an inherited home provides you with a unique opportunity. In a situation like that, selling immediately or waiting are both viable options. That is because you can still stay in your current home as you figure out what to do next with your inherited home. Consult other factors when deciding what to do with your inherited property. Check out market trends and interest rates to find out if right now is the best time to sell that new acquisition of yours.
The Current Condition of Your Home
Even the best-designed homes will start to show their age at some point. Once they do, you will have a decision to make. You can either pay for renovations and stay in your home or pay for renovations before selling your home. Selling your aging home without fixing it first is a big no-no. The moment potential buyers drop by to check out your home, they will likely notice those serious issues and turn their attention to a different property. Whatever offers you get for your aging home may be well below market value. You would be doing yourself a great disservice by selling your home at such a discounted price. Unless you are in a desperate position financially that paying for repairs is no longer an option, you should wait until your home is in better shape before selling. You may even get a better deal than expected if you opt to wait until they finish those renovations. Selling your Long Island home can be a troublesome affair. You can make it easier by working with a direct home buying company. Contact us at Home Buyers LI if you want to receive the best deal on your property!