Many homeowners reach a point where they begin to question whether they should sell their house. Deciding when to sell your home can be a difficult decision and shouldn’t be solely based on market conditions. It’s crucial to take your personal circumstances into account. Although there is no definitive right or wrong time to sell you home, there are certain situations when it might make more sense.
If you’re wondering whether it’s the right time to sell your home, here are some important things to consider.
Do You Have Enough Equity To Sell Your Home?
For the majority of homeowners, the question of whether it’s the right time to sell comes down to one thing: how much equity they have in their home. Selling your home with negative equity is known as a ‘short sale’ and is generally a bad idea. If you have negative equity, you should stay in your home unless you’re facing bankruptcy or foreclosure.
If you’re unsure of how much equity you have in your home, it’s easy to find out. Start by finding your latest mortgage statement and determining your current mortgage balance. Once you know how much you owe on your loan, you have to determine the market value of your home. To get a loose estimate, you can use an online valuation site such as Zillow. However, if you want an accurate estimate, you should seek the advice of an experienced real estate agent. Once you have both figures, simply subtract your mortgage balance from your home’s market value to find your estimated equity.
Typically, before you sell your home, you should have enough equity to pay what you owe on your current mortgage and your closing costs. Ideally, you should also have a 20% down payment for your next home, and enough to cover moving expenses.
Can You Afford To Buy A House That Suits Your Lifestyle?
Another essential factor to consider is whether your home meets your current needs. If you find yourself in need of an extra bedroom for your growing family or you’re ready to downsize, it could be a great time to sell you home. I
Whether you’re moving up or sizing down, it’s crucial that you can afford a home that meets your needs. Ideally, your monthly mortgage payment should be 25% or less of your salary after taxes. If you want to sell your home but can’t find anything that works for you in your price range, you have a problem. Before putting your house on the market, it’s a good idea to speak to a lender and get preapproved. Being clear about how much you can afford can make finding a new home much more straightforward.
Are You Emotionally Prepared To Sell Your Home?
After investing years of time and energy, selling your home can be fraught with emotion. Not only will you have to get it prepared for the open market, but you’ll also have to work your schedule around showings and open houses. The sales process can take a toll on you emotionally, so it’s crucial that you prepare yourself for a couple of months of upheaval.
One way to help yourself prepare for the sales process is to learn more about it. Knowing what to expect can stop you from getting overwhelmed. An experienced real estate agent will be able to walk you through all of the stages of a typical real estate transaction. From accepting an offer to closing day and everything else in between, your agent can help you navigate the process smoothly.