How do you know it’s the right time to sell your home? Here are the five things I ask people to consider in order to figure that out:
The first consideration is the money. You’ll need to know the equity, how much you owe on the house, and how much the house is going to sell for. You can calculate how much you owe by conferring with a lender. To estimate how much your house will sell for, you can use the home valuation button or ask a professional and solicit their opinion. After that, subtract 9% from the figure it’s going to sell for; that covers both sides’ commissions (which the seller pays for), taxes, and closing costs. In other words, 9% less than the dollar amount it’s going to sell for is how much money you’re going to be left with at the end of the transaction.
How much money you’re going to get out of the deal is a worthwhile consideration.
The second and third considerations are whether the home is too big for you or if it has become too small. Have you outgrown it? Are you bigger than the house, now? Are there kids on the way? Are you downsizing for some reason? All that means a lot when it comes time to sell. Neighborhood considerations can also be lumped in with these size factors. Perhaps the neighborhood has changed for example, or there is an area that you feel more drawn to nowadays.
The fourth consideration is interest rates. Interest rates literally have nowhere to go but up. In theory (and in all likelihood), this will put a damper on buying in general, but we shall see. This will also limit your ability to buy a new home or at least have you pay more for a loan. Sitting here, at the end of the third quarter of 2016, right before the election, the Fed keeps threatening to raise interest rates in their December meeting, but I don’t quite buy it yet.
The fifth and last consideration is whether it’s the right time FOR YOU. I know all four considerations fit into this one, but I always tell my clients to not feel pressured to sell. Sell when you’re ready and you have everything else ready to go. Don’t chase the market. Just sit back and breathe for a second. You have a home; it works. Is it going to be a better deal to sell? I don’t know. Take the first four considerations I just gave you and weigh those carefully. If it is the right time to sell, start interviewing agents to get it sold.
If you have questions you’d like me to answer, let me know. If I use any of your questions in a video, you get a $25 gift card. Just call me, email me, or get in touch with me any way you can. I look forward to hearing from you!