Signs You’re Ready To Sell Your House
Selling your home should never be a snap decision. If you’re like most people, buying a house is the biggest purchase you’ll ever make, so moving on should be decided upon after careful consideration and calculation.
Make the decision to move after doing some soul searching and math calculations.
Here are some guidance tips:
Check your equity.
Is your home’s equity on your side? That would mean that your home is now worth more than what you have left to pay on your mortgage.
Here’s how to do the math to find out:
- Look at your latest mortgage statement.
- Note your current mortgage balance.
- Ask your realtor to run a comparative market analysis (they’re usually free).
- Subtract your home’s mortgage balance from your home’s estimated market value (as found on your comparative market analysis).
- The difference is your home equity value.
- Is there enough equity to pay off your existing mortgage and cough up a 20% downpayment on a new house? Remember that you’ll also need money for closing costs and moving expenses.
How bright is your financial picture?
Go over your finances with a fine-tooth comb:
- How is your credit card debt?
- Do you have three-to-six months of emergency savings?
- Are you able to comfortably pay your mortgage payment every month?
- Are there upcoming huge expenses on the horizon, like college tuition or medical bills?
Unless you are as free and clear as you can comfortably be, you may want to give your potential move some more consideration.
Are you emotionally prepared for a move?
Moving is one of the most stressful episodes in life. Are you ready to handle it? Moving takes work, even before the moving van arrives. You have to get your house ready for potential buyers, and be ready to show it for weeks or even months going forward. You will need to steel yourself for tough negotiations over the sale, and be ready to start life all over again in a new place (your family too). Consider all the changing emotions that come with a move to a new house.
Will the house you buy be affordable and workable?
It’s nice to dream of a new home and a new way of living, but be sure it’s going to make sense in reality.
- Will you be upsizing or downsizing? Will you be able to easily make the adjustment?
- Will your family be equally okay with a move?
- Will the mortgage and related expenses fit your budget?
- Is the home located in a market that expects to increase in property value over the next few years (or when you are ready to sell again)?
Note: when the time comes to sell your house, be sure to use a licensed real estate agent. Your agent can help you decide if the sale makes sense from a market standpoint, as well as assist you in setting the best price for your home. An agent can also help you stage your home for showings, and make suggestions about how to best promote your listing. Most importantly, an agent can bring you interested buyers!
Moving to a new house can be wonderful, but before you make the decision to go forward, be sure that you are financially and emotionally prepared to make the move. Once you give the move serious consideration, your move will feel like a more weighted and rewarding decision.