According to NAR research, the most common reasons to list a home for sale are a desire to be closer to friends and family, a too small current home, or a change in family situation. But before you decide to put your home on the market, you should find out if selling your home is the right move to make.
These questions can help you decide whether you should list your home for sale or stay where you are a little longer.
1. Have you built substantial equity in your current home?
Check your annual mortgage statement or call your lender to find out how much you've paid down. Usually you don't build up much equity in the first few years of your mortgage, as monthly payments are mostly interest. But if you've owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation changed?
If you're making more money, you may be able to afford higher mortgage payments and cover the costs of moving. If your income has decreased, you may want to consider downsizing.
3. Is the effort and cost of maintaining your current home becoming difficult to manage?
You may want to consider whether a smaller house, condo, or rental would be more appropriate for your current lifestyle.
4. Have you outgrown your neighborhood?
The neighborhood you pick for your first home might not be the same one in which you want to settle down for good. And the neighborhood where you've spent several happy decades may not be the one where you want to spend retirement. You may realize that you want to be closer to your job, live in a better school district, or spend less time traveling to see family & friends.
5. Are there reasons why you can't remodel or add on?
If you need more space, you can sometimes create a bigger home by adding a new room or building up. But if your property isn't large enough, your municipality doesn't allow it, or you're simply not interested in remodeling, then moving to a bigger home may be your best option.
6. Are interest rates attractive?
Low rates can help you buy "more" home and make it easier to find a buyer for your current place. It may also help you expand your search to find a home you might have previously overlooked.
7. Are you comfortable moving in the current housing market?
If the market is hot, your home may sell quickly and for top dollar, but the home you buy will also be more expensive. If the market is slow, finding a buyer may take longer, but you'll have more selection and better pricing as you seek your new home. Our agents can tell you what we see happening locally and how the current market will affect your ability to sell and buy within your desired timeframe.
If you've answered yes to most of these questions, then it might be a good time for you to sell. New Leaf Team would be glad to talk to you about your home ownership goals and how we can help you achieve them whether that means helping you sell and buy a new home or recommending someone to help you expand your current one.
Call us at 434-214-6121 to talk about what your next steps might be.