Not sure when to sell your house? If you’ve been on the fence, we’ve got good news: It’s a great market for sellers! Limited inventory continues to drive home prices up, and the latest data from the National Association of Realtors shows that half of recently sold properties were on the market for just 39 days.
Of course, the decision of when to sell your home isn’t solely based on market conditions. You have to take your personal situation into account.
You’re Out of Debt With Cash in the Bank
If you didn’t have all your financial ducks in a row your first time around the home-buying block, you probably learned a few things the hard way. Like the fact that Murphy can smell broke from miles away. If it can go wrong, it will! Put those lessons to good use and be a money-smart home buyer the next go-round!
Start by taking a hard look at your finances. If you’ve paid off all your nonmortgage debt and have three to six months of expenses in your emergency fund, that’s a good sign you’re financially mature enough to purchase a home again.
You’ve Got Equity on Your Side
When the housing bubble burst, home values plummeted, sending many mortgages underwater. Thankfully, the tide has turned: According to CoreLogic, only 8% of homes with a mortgage had negative equity at the beginning of 2016. If you’re not sure where your equity stands, ask an experienced real estate agent to run a free comparative market analysis (CMA) to determine an approximate value for your home.
Your Home No Longer Fits Your Lifestyle
Another factor to consider is how well your home meets your everyday needs. Perhaps you could use another bedroom (or even two) to accommodate your growing family. Or maybe your kids have all moved out and you’re ready to downsize.
You Can Actually Afford the Move
Don’t get so carried away by the excitement of your next home that you forget to account for the cost of leaving your current one. Make sure you are financially ready to buy a home and know exactly how much you can spend on a house. Hiring professional movers? Save up cash to cover the cost of packing up and hauling your stuff away.
You should also invest a little to get your current place ready for prime time. Linda recommends focusing your home-improvement dollars on these areas:
- Curb appeal
- Kitchen and bath
To find out more contact one of our real estate agents today!
See full “4 Signs Now’s the Right Time to Sell Your Home” article by Dave Ramsey here.