When Is It The Right Time To Sell Your Home?
Deciding to sell your home is never easy. We don’t care what those HGTV real estate shows say! It is absolutely impossible to decide in just 30 minutes that it’s time to sell your home. Just because you hate parts of your property it doesn’t mean you have an excuse to move homes. There are a million things that you should consider first before making that final decision to sell your house and move onto a new property. You need to consider how a new home might affect your commute, your neighborhood, your current life-work balance, and so much more. All these considerations revolve around one crucial question: “Are you ready to start all over again with a new home?"
Changing homes is a major life change and the decision to sell your home should not be taken lightly. Even after you decide it’s time to sell your home, you might end up second-guessing yourself and you’ll start looking for ways to clarify your decision. If you feel particularly overwhelmed, stressed, or uneasy about parting ways with your current home, it’s time to just calm down for a moment. This anxious feeling is just a sign that you need to personally reflect on the prospect of moving homes and take the time to think through everything. Maybe it’s not the right time to move, but instead it’s time to just refinance, stay put, or remodel your home. Let’s examine a few typical scenarios and signs that should influence your decision to either sell your home or to stay put.
You're Paying For Private Mortgage Insurance (PMI)
This Means It’s Time To… Refinance or Do Nothing
In the case of some mortgages, you might be required to pay for private mortgage insurance (PMI). It’s all dependent on the down payment for your home that you pay up front. Was your down payment less than 20%? If so, then it’s very likely that your mortgage came with a PMI that adds a little extra chunk of change to your monthly payments. Those small fees may not seem like a big deal, but the numbers can add up fast. Trust us though, it’s probably not the right time to sell your home. You can get out of your PMI by refinancing your mortgage. If your home now has at least 20% equity, then it’s time to refinance instead. Haven’t reached that equity milestone yet? Then you should probably just wait a little bit longer until that equity builds up a little more.
Suddenly, There Are 100 & 1 Things That You Dislike About Your Home
This Means It’s Time To… Stay Put and Update or Sell
As soon as they buy their first home, every homeowner enters into a brief honeymoon phase. They walk through the halls with rose-tinted glasses and love every aspect of it. Sooner or later, those glasses break and the honeymoon phase quickly ends. You start to notice the small imperfections of your new home alongside the bigger issues. The hardwood floors are scuffed up more than you thought, the backdoor won’t fully close without enough strength, and maybe you even get a splinter every time you descend those old basement stairs. You slowly start to dislike certain features about your home may have been appealing to you before. It builds until you start to think it’s time to sell your home.
However, that just means you have to go through the whole moving process again. And who knows! Maybe you’ll experience these similar feelings of disappointment at your next property, and then maybe the next one too. It could be the right time to sell your home, but there are so many things you can do before you make that decision. We’d suggest that you ignore your fight-or-flight response and focus on improving your current home however you see fit. Do you hate the countertops in your kitchen? Replace them with ones you love! Does the exterior of your home feel foreign or boring? Fix it up with new paint and roof shingles for a better curb appeal. Are you repelled by your living room? Maybe all you need to do is just add in some new furniture that feels more like you. These upgrades will give you more time to settle in and make your home feel more like yours. Plus, it’ll increase the value of your home, so you get a better ROI when you decide it’s finally time to sell your home.
You Recently Made A HUGE Investment
This Means It’s Time To… Stay Put
Financial hardships can sometimes drive people to do irrational things. Your budget might stretched a little thing right now from larger life investments, like home renovations, portfolio divestments, or other investments. Yes, selling your home would bring in a bunch of money to help rebalance your finances. But, most of that profit will most likely go towards your down payment on your new home. You’ll be right back to square one, and don’t forget about how expensive the moving process will be.
You can improve the value of your home through renovations and upgrades, but that doesn’t always translate to a higher sales price. Don’t let the assumption of a higher ROI act as the sole motivator for selling your home. Instead, take the time now to enjoy the new scenery of your renovations.
You’ve Built Up Too Much Debt (But Also Some Equity)
This Means It’s Time To… Refinance
Like we just discussed, you can profit from the sale of your home, and use those funds to pay off any lingering loans and credit card bills. But, you can’t guarantee that selling your home will cover all of your debt. You might not even get close to your asking price too! If you want to get better offers for your home, then you should probably first invest in making repairs and upgrades. Yes, we know that if you have debt, you probably can’t afford many upgrades right now.
Fortunately, there’s a good work-around for this situation. Over the years, you’ve probably built up some equity on your home. That equity will allow you to refinance your mortgage, which should result in a lower interest rate and a lower monthly payment. With less interest and less money wasted every month, you’ll get a little breathing room in your budget. You could also consider a cash-out refinance option, which can help consolidate your debt. This refinancing option pays off your balances up front, then you would have to make fixed payments on your refinanced loan. Whichever option you choose, just know the time to sell your home is far off in the future.
You’ve Grown To Dislike Your Neighborhood
This Means It’s Time To… Sell
Neighborhoods change slowly over the years. Your quiet suburban road that you once loved so dearly may have become a hot hangout spot for some noisy local high schoolers. Maybe your new neighbors are really into composting and backyard parties, now making it impossible for you to enjoy a peaceful Sunday afternoon in your backyard hammock. Street parking has become a rarity because of new local eateries and retail shops, forcing you to park a mile away every night.
If your neighborhood has started to become more and more annoying, you’ve probably searched for ways to change it back to the way it was before. But, it’s time to face the facts: you can’t change your neighborhood by yourself. As a homeowner, you can do a ton of things to improve the value of your home, however you can’t do much to improve your location. If your neighborhood has changed for the worse and now you hate the idea of heading home everyday, then it’s a sign that it’s time to sell your home. As you start the process of selling your home, start visiting potential neighborhoods too! You’ll get a true sense of the neighborhood when you visit them on your commute home and on weekend nights.
Your House Has Run Out Of Space
This Means It’s Time To… Sell
This is, by far, our favorite scenario out of all of the ones on this list. That’s because it’s the most exciting one! You’re moving up in life, your family is expanding, and your current home is filled with clutter. Your kids need their own personal bedrooms and you need a bigger backyard for your pets. Things feel cramped and space has become a priority for your family. If this sounds like you, then it’s time to sell your home and move onto your next life chapter.