6 Signs You Should Sell Your Home
6 Signs You Should Sell Your Home
At some point, you might find yourself contemplating: Is it time to consider selling my house?
Based on data from the National Association of Realtors®, homeowners typically reside in a house for approximately ten years before deciding to sell. Does this duration strike you as surprisingly brief or excessively lengthy? In reality, the length of time varies significantly among individuals, primarily influenced by their specific reasons for selling.
The choice to sell your home can stem from various reasons. It might be a well-pondered decision you’ve contemplated for a considerable duration, or it could be a spontaneous choice that emerged in the spur of the moment.
A swift decision to sell a home may arise from a sudden defining event like a transfer, death, or divorce. Conversely, in many instances, the process is more gradual, influenced by various factors such as children leaving the nest, a longing to be nearer to family, retirement plans, or the aspiration to reside in a smaller, larger, newer, or different neighborhood. Typically, this type of decision undergoes a gestation period lasting around two to four years.
Numerous common reasons, both financial and emotional, drive us to sell our current homes. Sometimes, these reasons can catch us by surprise. If you’re contemplating whether it’s the right time to list your house, here are some unmistakable signs indicating it’s time to sell, even if you haven’t reached the ten-year mark.
It’s a seller’s market
Let’s begin with one of the most evident motives for selling: It’s currently a seller’s market, offering you the opportunity to reap a substantial profit from your property. You need to gauge the key indicators of a strong seller’s market.
Here are a few indicators to watch for: First, observe an uptick in the price per square foot for real estate in your area. Second, notice a decrease in the amount of time properties stay on the market. Third, keep an eye on the increased brokerage activity in your neighborhood. If your location is particularly in demand, you might even receive a letter or a visit from a listing agent eager to assist you in capitalizing on the current market momentum.
If any of these conditions hold true in your area, it might be worth considering selling your property.
Local homes are selling for a lot
To monitor comparable home prices in your neighborhood, make sure to check online real estate listings and pay attention to the “recently sold” flyers you receive in your mailbox.
If other houses on your street with the same bedroom/bathroom count as yours are selling for a price that would leave you more than content, it could be the right moment to consider moving on.
Another indicator of a thriving home sales market is the correlation between asking prices and sale prices. In a seller’s market, if prospective buyers swiftly make offers, matching or even exceeding the sellers’ asking prices, it becomes evident. As a result, you may receive an offer from a buyer that you simply can’t turn down.
You’re financially stressed
Not all individuals sell their real estate solely to boost their financial reserves. Some homeowners sell their property because they underestimated their ongoing housing costs and seek relief from their mortgage burden. Others choose to capitalize on their equity for various purposes beyond financial gain.
if your property taxes or mortgage payments have become overwhelming, the most viable solution could be to sell your current home and seek a more affordable option. Opting to sell is a better alternative than grappling with a burdensome mortgage loan, which could potentially lead to the risk of foreclosure.
In order to ensure financial ease, it is recommended that your monthly housing expenses, encompassing mortgage interest, principal, property taxes, homeowners insurance, and any applicable HOA or condo fees, should not surpass 28% of your gross monthly income.
Prior to selling your home with the aim of reducing your monthly living expenses, it is crucial to ensure that you can find another home available for rent or purchase within your budget. Additionally, verify that you meet the qualifications for a loan at the prevailing interest rates when you decide to make the transition.
You’ve outgrown your home
The starter home that once suited you while anticipating your first child may no longer be suitable now that you have three preteens and pets. Although it may be bittersweet to part with the memories you’ve created in your current home, if it is causing you more stress than comfort, Shayanfekr suggests it might be time to take the leap and consider selling the property.
Other life changes, such as death, serious illness, or divorce, can also be significant factors influencing the decision to sell a home. These emotionally challenging experiences may create a strong need for change. Another factor to consider is relocation due to a new job opportunity.
You’re tired of home maintenance
On average, homeowners spend approximately $2,000 per year on maintenance services. This expense covers scheduled services like landscaping, snow removal, septic service, private trash and recycling, as well as housecleaning—excluding any unexpected repair costs.
Tired of witnessing these payments gradually draining your bank account? You have the option to sell your current property and consider purchasing lower-maintenance real estate, like a condo or new construction.
Alternatively, you might want to explore the possibility of renting, where a landlord can handle concerns such as leaky pipes and other property-related hassles, allowing you to experience a more carefree living situation.
You’ve built up enough home equity
Selling your home too soon, especially if you have a mortgage, might not allow you to build substantial equity beyond the initial down payment. During the initial stages, a significant portion of your mortgage payments mainly goes towards covering interest expenses.
In reality, unless the housing market experiences a significant boom (as mentioned earlier), selling your home could lead to a financial loss. In some cases, you might even end up owing more than what you can acquire from the sale, considering the closing costs involved.
Keep in mind that selling your home isn’t cost-free. You’ll need to allocate funds to cover various expenses related to hiring a real estate agent, the closing process, and, naturally, the purchase of another home.
Staying in your current home for at least five years, unless you have an urgent need to move. Rapidly selling can send potential buyers a negative message.
Buyers become uneasy when it seems like you’re selling too soon. They may wonder what’s wrong with the house or why you’re leaving so quickly. It can lead them to imagine various negative scenarios, like potential structural issues, troublesome neighbors, or other concerning issues.
Another reason to reconsider selling is if you don’t meet the qualifications to avoid paying capital gains tax on your profit from the sale. Typically, you can exclude the gain if you’ve owned and lived in the home for at least two of the past five years. Selling before the two-year mark, without qualifying for any exceptions, could result in a costly mistake. Paying capital gains tax might significantly reduce the equity you originally planned to have from the sale.
But beware of snap decisions
Certainly, there are no guarantees that selling will be the best long-term option for you. Take your time to carefully consider whether selling is the right decision for you, and collaborate with your real estate agent to analyze the local home sales market before setting the price for your home. Underpricing could lead to a buyer snagging it for too cheaply, while overpricing may deter the right buyer from considering it.
Ultimately, selling your home is a deeply personal decision. Prioritize what will help you live a fulfilling life, even if it’s not necessarily “happily ever after,” but rather “happily for now.”
Experts in Residential Real Estate in Orlando
If you are BUYING or SELLING real estate it’s quiet often the single most important financial decision you make. For the last 30 years we have helped clients buying and selling property in Orlando and the surrounding areas. Put simply, this means the knowledge and expertise accumulated over this time ensures our clients get the best representation possible.
Our experienced agents will help and guide you through the entire process providing valuable support every step of the way.
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Bardell Real Estate are the experts in helping you with your selling, buying or renting needs near Orlando, Florida. Make your Disney area experience a forever memorable one. Call us now to speak to a real estate agent.