About once every ten
years homeowners sell their current home and move into another according to
recent studies. For some people there are certain signs that motivate them into
selling their home.
It is a decision that you
have to carefully consider because changing your address will involve the job
of selling and buying a home.
When is it the right time
for you to downsize or upgrade?
The following are some of
the best tips on whether it's the proper time to change homes.
1. You have lived in your home for at least five years.
Popular opinion states that you should own a home for a minimum of five years before you can sell without losing money. The costs of buying and selling a home do add up so it's best if your property has appreciated enough in order for you to purchase something new as pay the real estate agents' commission from three-to-six percent.
Popular opinion states that you should own a home for a minimum of five years before you can sell without losing money. The costs of buying and selling a home do add up so it's best if your property has appreciated enough in order for you to purchase something new as pay the real estate agents' commission from three-to-six percent.
Of course, you can choose
to sell it on your own to save commission. However, studies have shown, your
home will sell for more money with a
real estate agent instead of without.
2. Your home's value increased big time due to being
in a seller's market.
It makes perfect sense to sell right now. On the other hand, the next home you buy may have also increased a lot as it's in the same market. So, you need to be sure the location you're moving to hasn't had a similar spike in prices.
It makes perfect sense to sell right now. On the other hand, the next home you buy may have also increased a lot as it's in the same market. So, you need to be sure the location you're moving to hasn't had a similar spike in prices.
Some of typical signs you
are in a seller's market include:
• Price per square foot is increasing in your neighborhood.
• Shorter days on market for properties.
• There are buyer bidding wars happening.
3. Your home is bleeding your bank account above and
beyond what you like.
If your home is costing you greater than 36% of your monthly income before taxes, you may be in a situation where your housing costs are way past your budget.
If your home is costing you greater than 36% of your monthly income before taxes, you may be in a situation where your housing costs are way past your budget.
A great deal of
homeowners unintentionally get themselves in a position where their mortgage
payment and other household expenses are too much to deal with. And perhaps you
are handling it well, but if you are stressed about it, it may be time to sell
and get yourself a more affordable home, townhouse, or condo.
One solution is making
more income. Will you get a salary
increase soon? Are you comfortable with renting out a room to help make ends
meet? A lot of people stretch themselves
too much just to get into the house. Once the excitement of owning your own
home is gone, the pressure will start
building to do what it takes to reduce the mortgage payment. Living house rich and cash poor can quickly
become a miserable lifestyle.
4. Your neighbors just sold their home for an
outstanding price.
When your neighbors sell their home for a price far beyond what you thought it was worth, it is hard not to consider if you sell for the same or more.
When your neighbors sell their home for a price far beyond what you thought it was worth, it is hard not to consider if you sell for the same or more.
Contact a local real
estate agent to see if your home may also sell for that price, or more. This is
called doing your research with a local expert.
5. Your life has changed considerably from the time
you paid for your home.
There may come a time where it doesn't really suit your needs anymore. You may have bought a home with two or three stories and it has become physically difficult as you aged. You may raised your kids in the home, and now they are all grown up and moved out and you're close to retirement. Whatever the reason may be, a move may be just what you need to do.
There may come a time where it doesn't really suit your needs anymore. You may have bought a home with two or three stories and it has become physically difficult as you aged. You may raised your kids in the home, and now they are all grown up and moved out and you're close to retirement. Whatever the reason may be, a move may be just what you need to do.
6. You want to downsize from your big home and own a
vacation home
An increasing number of people are choosing to downsize from their big home and be the owner of two smaller homes. In many cases, the second home will be located in a vacation area.
An increasing number of people are choosing to downsize from their big home and be the owner of two smaller homes. In many cases, the second home will be located in a vacation area.
Buying a vacation
property can be a beneficial idea. One benefit is, a vacation home is a great
place to spend time away from the hustle and bustle of the congested city, and
also become a superb investment.
