5 Signs You Are Ready To Sell Your Home

There is a saying by Mehmet Murat ildan: “Choices are abundant, it is the right decision which is the rare one.” In life, you will always have the luxury of multiple options, but making the right decision at the right time makes all the difference.

“When should I sell my house?” is a question that bewilders most of us. Well, to be honest, there is no one-word answer, as there are infinite factors that contribute to your decision.

However, The Following Are Questions You Should Consider Before Selling Your Home:

Q# 1: How Much is the Market Value of My Home?
Q# 2: How Much Equity Do I Have in My House?
Q# 3: Is Market Slow? How Long Would it Take to Sell My Home?
Q# 4: Does My Home Require Repairs?
Q# 5: Can I Afford to Buy A New House that Suits My Lifestyle?

 

Let’s discuss them one by one.

How Much is the Market Value of My Home?

It is important to know how much your home is worth before selling it. You need to know if you are getting a better return on your investment. The most practical way of knowing the market value of your home is by seeking information about the sale of similar homes in the surrounding area. If you can get this information, you may learn how much you will earn from the sale of your home now.

For a precise comparison, you need to consider factors such as the number of bedrooms, bathrooms, and square footage. Although it is less likely that you will find rates of homes that match yours exactly, getting as close as possible is worth the effort.

Besides, you may ask your agent (if you hire one) to help you calculate the market value of your home.

How Much Equity Do I Have in My House?

Home equity is defined as the actual percentage you own in the market value of your home. When you buy a home with 100% cash, you have the full equity of your home. But, if you buy through a mortgage, you initially only have the equity equal to your down payment. As you pay your mortgage installments, you gradually increase the equity in your home.

Home equity is a sign that you’re ready to sell your home if you make enough money from the home sale to pay off the remaining mortgage while still having enough to cover selling expenses. Most of the time, people take into consideration if they can make the down payment of the new home from the profit generated by selling their home.

It is not wise to sell your home if you can’t pay off your current home loan and cover the closing costs, let alone cover the down payment of the new house.

Is the Market Slow? How Long Would it Take to Sell My House?

Before reaching a decision, you need to get some insight into the real estate market. Is the market slow or is this an active time of year for real estate transactions?

To figure out if the market is slow, observe how long property stays on the market. In addition, if more properties are popping up for sale in the market, it’s a slow market. Usually, spring is the season when you can get more interest in sales while fall remains hard for sellers.

Do you need to figure out how long you can wait without falling victim to the consequences of the delay? If you are moving due to job relocation or are under any other financial constraints, you may not have the luxury of waiting for the market to pick up you’ll have to make some bold calls while praying for better luck.

Most of the time there’s nothing you can do to control how the market behaves. All you can do is decide when to jump in.

Does My Home Require Repairs?

An important consideration before selling your home is how you will stage the home for sale. Wear and tear can mean repairs and, by law, you have to disclose major structural issues to the potential buyer. In other words, there is no way around it.

You’re not legally obligated to make repairs. However, the potential buyer is likely to push you for concessions in the price of the home once they know it requires maintenance.

So before listing the property for sale, you will need to get the basic work done, which requires a budget. Take a look at your bank account and determine whether you have money to allocate to home repairs.

Can I Afford to Buy A New House that Suits My Lifestyle?

Let’s address the elephant in the room: can you afford to buy a new home once you sell the current home? What are your plans? Do you plan to go back to renting or do you plan on upgrading once you sell?

Most of the time people sell because they want to upgrade. In that case, you will have to ensure you have enough of a down payment to cover what your new home requires. Do you have enough money set aside or will you be able to cover the down payment using the profit generated from your current sale?

Knowing whether you have enough money to pay the down payment for the new house is a clear sign that you are ready to sell your home.

Conclusion:

These are not the only questions that you must consider before deciding whether you are ready to sell your house. Rather, think about the current reality in which you live. Once you feel comfortable answering those questions and are satisfied with the answers then you should consider selling your home.