When Is It the Right Time to Sell Your Home?
5 Signs That Indicate It’s the Right Time to Sell
For most homeowners, the home they’re living in now is not going to be the last home they’ll ever purchase. Many people purchase two or three homes before they finally buy their “forever home.” This means that if you’re like most people, you will sell the home you’re living in now at some point in the future. But, how can you tell when it’s the right time to sell?
A lot of homeowners look to the current market conditions as the lone sign for when to sell, but this is only one factor and it is, in fact, one of the least important factors. Here are five more important signs to watch for that will tell you when you should seriously consider selling your home.
Being completely debt-free might be challenging, but you should at least be in a financial situation in which you are carrying only a very small amount of debt before you choose to sell. If you’re thinking about selling in the near future, you need to take a long, hard look at your finances and start getting serious about reducing your debt. If you can get to a point where you’re debt-free with money in the bank, then you will be in good shape to sell.
You Have Three to Six Months of Expenses in Your Emergency Fund
If you don’t have an emergency fund, then you need to get started with one immediately. Before you sell, you should have at least three to six months of expenses saved in your emergency account because this shows lenders that you are financially mature and a smart money manager.
After all, you’re going to have to buy a new home while you’re selling the other, and in the event that your current home doesn’t sell quickly, you have to be able to support two mortgage payments. In this scenario, the emergency fund will most certainly come in handy.
You Have Equity in Your Home
If you owe more than you have paid on your current home, then now might not be the best time to sell because your profit potential will be slim. But, if your home is paid off or you have significant equity in the home, then you’ll be in a much better position to sell.
Your Home No Longer Fits Your Lifestyle
In many instances, it doesn’t make good financial sense for an older couple to stay in their large family home once all of their children leave and build their own lives and families. The same can be said for a young family that’s outgrowing their current home. In both of these cases, a new home may well be in order. So, as long as all or most of the other signs are in alignment, this is a compelling reason to sell a home now.
You Can Afford to Move Into a New Home
When you buy a new home, you have a lot of new financial obligations that will come with it. From hiring moving companies to making repairs around the house to painting, fixing up the yard, upgrading appliances, and more, you need to have the money to make the move as comfortably as possible. If you can’t afford to move, then this is a sure sign that now is not the time to sell.
Of course, the above is template formula that anyone thinking about selling should follow, but in today’s world, meeting them all can be a challenge. For this reason, it is always recommended that you enlist the help of a professional real estate agent. A good agent will put your needs over a sale, so take advantage of their knowledge and they will help you make the right decision at the right time.