How Do You Know When It’s The Right Time To Sell Your House?
Posted by : Premraj | Posted on : Friday, October 21, 2016
DELICIOUS
SU
REDDITA lot of homeowners sit on the fence when it comes to deciding whether or not they’ll sell their home. Homeowners might be wary of putting it on the market because they think the market and the value could go up in the future.
At the same time, if homeowners wait too long or aren’t sure how to spot the right moment, they might not only get less money when they do sell, but they might have trouble selling it altogether.
It’s really a balancing act deciding when to sell a home, and a lot of factors play into the equation. There are both personal factors to consider, as well as outside influences like government policies that play a role in deciding when it’s right to sell a house.
The following are some things you might want to think about as you make the decision.
Do you have equity in your home?
Before contemplating a move, think about the amount of equity you have in your home, which is figured by looking at the value of your home minus any loans you hold on it. If the market shows you could sell your home, pay off your mortgage and costs associated with the sale and you wouldn’t need any money out of pocket to complete the sale, it could be time to consider it. If this isn’t the case, you should probably wait until you’ve put more equity into your home.
What are the demographics of buyers?
Think about your home and the features it has and how they would appeal to various demographics. Is it a good starter home for a young family? Maybe it’s a better home for baby boomers nearing retirement, or perhaps it’s a good forever home for a family.
Think about the things in your home and what type of buyers are going to be looking for them, and then think about the real estate market. Homes that are smaller, one-story and appealing to boomers are doing well right now because the aging U.S. population is moving toward retirement, which means downsizing. It’s often the larger multi-story homes that aren’t faring as well, so think about the trends in home buying before making a decision.
Look to the future of the economy
So many homeowners will think only of the present economic situation when they’re deciding whether or not to sell their home, but you should think about the future as well. Does it look like strong economic and job growth are on the horizon, or could the economy be teetering on the edge of a recession?
Signs of an impending recession or downturn include higher unemployment numbers and weaker consumer spending and sentiment. If you see these things start to happen, selling right away can actually be best, to avoid the impact of the potential downturn.
Think about government policies
At the macro level, the government plays a significant role in the real estate market, so pay attention to what’s happening there as well. If there’s a potential interest rate rise on the horizon, you might want to go ahead and sell before that happens. On the other hand, if there is a loosening of regulations that could allow lenders to extend more credit that could occur in the future, you might want to wait before putting your home on the market.
There’s no right answer as to the perfect time to sell your home, but by carefully weighing your individual situation as well as the local and national real estate markets, economy and government moves, you can typically find an optimal time to put your home on the market.
