Most people today do not buy a home and live in it forever. Over time most homeowners will upgrade or downsize as their life changes. It is always a wise idea to maintain your home regularly and monitor the market so you are best prepared for when a change is needed. Sometimes it is not always clear so how do you know when the right time to sell your home is?
Here are some basic ideas to help you determine if you have reached that point.
It is a Seller’s market. The real estate market inevitably changes where sometimes it is a buyer’s market and other times it is a seller’s. If it is a seller’s market and it appears that you can potentially profit from a sale, then it may be the right time to list your home and plan for a move.
You need more space. Many buyers purchase a home for a specific reason during a particular time their your life. Perhaps you may move if you have a growing family and need more space or maybe you wish to buy a smaller home as your children are no longer living at home. Maybe you are lucky enough to land a new job with a pay increase or your workplace is now located too far where you want to shorten your daily commute. These are examples of signs that a move may make sense in the near future.
You have a high interest rate. If you have a higher interest rate on your mortgage and a refinance will not put you in a better position then it may be a time to consider selling. Rates these days are still at historic lows and the real estate market is strong. Even if you decide to rent for a short term to rid yourself of the high rate it could be a better alternative.
Your mortgage is paid off. If your mortgage is paid off then every dollar that you get for your home sale will be profit. You may choose to stay and enjoy living debt free or you may decide to sell the larger home and downsize into something less expensive. If you walk away with a lot from your home sale and find something less expensive and and can pocket the profits then it may be a good move.