Have you been in your home for some time and for some reason you feel like you need to make that decision and decide to sell my house fast? Well, selling a home is one thing and knowing when to sell it is another. So, when should you sell your home? Some factors influence the time when it would be viable and sensible to make that market trip. The following are the reasons that should guide you on when to sell that home and not make a financial mistake in the process:
1. When your home does not fit your lifestyle anymore
Our everyday needs normally change due to a number of factors. Probably your home has expanded, and you are in need of more rooms. The kids may have left for college, and you are thinking of downsizing. If in need of more rooms, you will need to sell you current home and buy a bigger one to fit your needs. In case your family has shrunk, and you do not need extra rooms the bright idea would be to sell it, buy a smaller one and invest the extra cash. Downsizing or up-sizing should be done only if the mortgage is within your budget.
2. When you have no debt but cash in the bank
Probable when you took your first home, you made some financial mistakes. Now that you are experienced ensure you don’t make the same mistakes you did the first time. Be smart with your finances. This means no debts but cash in the bank when you are selling the home. Otherwise, the ghosts in the past may follow you the second time.
3. When equity favors you.
This will require you to seek the services of a real estate agent with experience to make an informed financial decision. This person will comparatively analyze your home to give you a rough estimate of the current value of your home. With not less than 20% of equity recovered for the next purchase, you can go ahead with the sale.
4. When the sale is cost-effective.
Before you decide to sell your home, ensure that it is cost-effective. If you hire professionals to move you, take into account the costs of hiring them. When you have laid down all the costs involved in moving, examined and realized that it would not impact on your finances negatively, then it is time you made the sale.
5. When mortgage rates are low
When mortgage rates are low, monthly costs are too. This will entice home buyers which in turn is great for sellers. People tend to buy homes when monthly costs have dropped because that is when they have some capital to spare and are likely to buy a home. So, keep your eyes fixed on the monthly costs.
6. When the inventory shrinks
As the inventory shrinks, homes become more valuable and hence their values shoot. In accounting terms, high demands and low supplies raise prices. Therefore, when should you sell your home? The answer is in when the inventory shrinks.
7. When the job market becomes stronger
The decrease in unemployment and increased wages translate to increased confidence in potential. Higher confidence makes buyers be bold in buying. When you study the rate of employment and notice it increasing, gather the courage and sell that home at a good price.
“When should you sell your home?” is a question that is very common on the lips and minds of home owners. To answer this question, the above factors should be enough to help you decide on the right time you should sell your home.