Selling your home is a big decision that most people do not take lightly. Change can be scary and the idea of moving out of a house that you have called home for several years or more may be stressful. That being said, there are many reasons to sell a house, and it all starts with asking yourself a few questions and determining the big question of whether now is the right time and “Should I sell my house”?
Selling your house at the wrong time has the potential to create issues down the line. Don’t worry though, in this article we will step through all of the things to consider so that you are confident in your decision when the question.
Let’s Begin!
Top Signs You Are Ready to Sell Your House
The important decision of selling your house is based on many factors, including the condition of the housing market. It is crucial to consider your current situation before deciding to sell your house. This is why advice from a real estate expert can be helpful when you’re asking yourself, “Should I sell my house right now?”
Below are a few signs that you may be ready to sell your house and move on to the next big adventure!
You Have Equity in Your Home
For many homeowners, the biggest indicator of being ready to sell their house is equity. If you do not have enough equity you can find yourself upside down. The goal of selling your house should be to gain a profit from the sale of your home. Selling your home when you have negative equity is not a good idea. This is a situation that is referred to as a short sale and means that you owe more than your home is worth.
Before you sell your house, you will want to figure out the amount of equity you have in your home. This may sound like a complicated process, but it is quite simple to calculate. To determine your equity, you will need to have your most current mortgage statement that shows your mortgage balance.
Determining the Value of Your Home
The next step is to determine the value of your home. There are many online calculators designed to determine property value, however, there are factors that may require a real person to help determine an estimated value of your property. The experts at Summit Way Realty can help you determine your property value by sharing a few pieces of crucial information as well as the ability to run a comparative market analysis report to provide you with a good estimate.
Once the value estimated value of your property has been determined, subtract the balance of your current mortgage from the estimated value. The difference between the two figures will be a good estimation of the equity you have in your house.
If you plan to purchase a new home with the money you make from the sale of your current house, the amount of equity you have should be enough to pay off your mortgage and have money to put down on your next house. The more equity you have, the better off you will be. Equity can be used to cover a variety of things including how much money you have to put down on your new home, closing costs, and expenses for moving. The more money you have as a down payment on your new home, the better. If you can, we suggest putting at least 20% down so that you do not have to pay private mortgage insurance (PMI). The cost of PMI can add up to thousands of dollars over a year.
You Have no Debt and Money in the Bank
When you are wondering, is it a good time to sell my house? Consider your financial situation. Specifically, are you in debt, and do you have money in the bank? In the United States, the median household consumer debt for 2020 was $67,000. While not all debt is bad, it’s important to have your finances aligned with your goals. We suggest reviewing your finances. If you have paid off all of your debt, not related to your mortgage, and you have a minimum of three to six months of living expenses put to the side in an emergency fund, that is a great indicator that you are financially stable enough to sell your existing home and purchase a new home.
Does Your Current Home Suit Your Lifestyle?
Deciding whether to sell your house has a lot to do with your lifestyle. An important factor to consider is how well your current home meets your needs? Do you have enough space? Is your family growing? Do you have enough bedrooms and bathrooms? Do you have space to entertain extended family and guests? Or, maybe you have more space than you need and it’s time to downsize. Understanding what you want and need in a home can help you decide if it’s time to sell. Not to mention if you downsize, the money you make from the sale of your home can be used to pay for a smaller home as well as allow you to invest for your retirement.
Whether you are upsizing or downsizing, your new mortgage must be within your budget. We recommend using the 28/36 rule. This means that your monthly mortgage should not be more than 28% of your gross monthly income and no more than 36% on all other debt.
You Have Enough Cash on Hand to Pay for Your Move
Buying a new home is exciting! You have an opportunity to create a new space where you will make new memories with your loved ones. Don’t get so swept away with the excitement of new beginnings and forget that moving costs money. We recommend looking into the costs of selling a house calculator. The cost of selling your home and moving can add up quickly when you consider everything that needs to be accomplished. Including things like prepping your home to sell, hiring a cleaning service while your home is on the market, staging your home, and hiring a moving company after you sell your home, just to name a few. It is important to make sure you save enough money to cover any expenses you will incur when you decide to sell your home and move.
We suggest that any money put towards home improvements go towards paint, curb appeal, and minor repairs. These things can go a long way when it comes to making an impression on potential buyers for your home and getting it sold as quickly as possible. For bonus tips, check out our blog on a Home Owners Guide to Listing Your Home to Sell Quickly.
You Are Emotionally Ready to Sell Your House
If you have determined that you are in a good financial position and are ready to sell your house, congratulations! Before the for-sale sign goes up, there are a few more things to consider:
- Can you make the time commitment needed to prepare your house to sell?
- Are you able to keep your house ready to be shown at the drop of a dime for however long it takes?
- Can you remove emotions when potential buyers decide your home is not right for them?
- Are you willing to negotiate with potential buyers on the purchase of your house?
- Can you separate the wonderful memories you made with your family from the house you are selling? Your memories stay with you forever no matter where you make your new home.
The overall goal with this line of questions is to make sure you are ready to sell your home and start the next phase of your life. An experienced real estate agent can provide you with advice on selling your house and walk you through the process step by step.
How Should I Sell My House?
If you have made the decision that you are ready to sell your house, remember that the real estate market can fluctuate. You have the option to do a sale by the owner or to hire a real estate agency. If you are leaning towards trying to sell your home on your own, it’s important to know that there is a lot of work that goes into selling a house. So, when you ask yourself, should I sell my house, consider the amount of work, and add the stress of going it alone.
You must work with an experienced real estate agent that is familiar with the housing market in your area. Working with an agent you trust to provide you with honest advice will ensure that your best interest, including your budget, is being put first.
A good real estate agent will arm you with the information you need, will put the quality of service ahead of sales, and be an expert in getting things done to sell your house. The job of a real estate agent is more than just scheduling your house for showings. They handle a large array of responsibilities to include the following:
- Offers sound advice on repairs and updates that will help your home sell.
- Helps with setting the right price based on the market and value of your house.
- Creates a marketing plan for the sale of your house to ensure the necessary exposure needed to attract potential buyers.
- Schedules open houses and showings for potential buyers.
- Provides advice on negotiating offers.
- Takes care of all necessary paperwork.
Last Thoughts
If you are still asking yourself, “should I sell my house”? An experienced real estate agent can help you determine if now is a good time. If you decide to move forward with selling your house, your agent will help you navigate the sales process of selling your house to make things as stress-free and simple as possible. Not to mention they can help you find your next home.
When you work with the experts at Summit Way Realty, you have the benefit of working with experienced and caring professionals. For more information or help with selling or buying a home, contact Summit Way Realty by visiting our website or giving us a call at 816-336-6400.
