If you are like so many homeowners today, you’re not living in your “forever home”. The home you currently reside in is a stepping stone to get you closer to your dream home.
More than likely you are always keeping one eye on your home and the other eye on the housing market. Trying to figure out when the best time to sell and move to your next stepping stone home on your list is a challenge.
Here’s how to know for sure when it is a good time to sell your home. When your current home is no longer a good fit for your needs.
Stepping stone homes are bought for a specific reason at a specific time in life. You might move because you’re expecting a baby and you need more room. Or, maybe your “baby” just went off to college and suddenly your formerly cozy home feels like an echoing cavern. Perhaps you just got a job on the other side of town and the commute is killing you. Or, now you work from home and you discover you hate your neighborhood. Regardless of why, when your home no longer works for your situation in life, it’s a good time to think about selling.
5 Signs It’s Time To List Your Home
When the Market Favors the Seller.
If there is one thing you can count on about the real estate market is shifting trends. Some years, it will be a buyer’s market and in other years, it will be a seller’s market. If you’ve been feeling like a move might be good for you and the real estate market is favoring sellers, you might as well throw your house in the ring and see what you reel in!
Your Mortgage is Paid.
Once your mortgage is paid off in full, every dollar you earn over what you paid for it is pure profit. Very few people in this country today get to enjoy the great feeling of being debt free, but if you sell your home after it is paid off and pocket the profits, you can be one of them.
Your Current Interest Rate is High.
Right now, interest rates on mortgage loans are at historic lows. If you are currently carrying a mortgage on a home that has a high interest rate attached (and especially if even a refinance won’t fix this adequately) then you know for sure that now is a good time to sell. Refinancing is another option if you love the home you’re in.
Your Home Is Dated
This is a tough one. If you’re home is over 20 years old and you have not maintained the home, you’re home is likely out of date. You’re now facing the decision to spend money on your home by updating your furnace, hot water heater, painting, carpeting and much more. Another option is to sell and buy a new home or rent until you find your forever home. If you sell without doing some updating, you will get a lower value. This is why it is a tough decision but you need to think about what is best for you and your current financial position.
Real Estate is Scarce
At this point in time, if real estate is scarce then homes are in demand. While interest rates remain low, this may be the time to capitalize on the market scarcity. On the flip[ side, finding a new home may be tough. New construction is a good option at this point. Aim for the highest price on your home while getting a brand new home could be the best move for you.