Maybe you’ve been on the fence about selling your house. It’s a difficult decision to make especially when deciding when is the right time. We have put together a few questions to ask yourself to assist you in making this tough decision.
What are you doing with the property?
Your house should be doing one of these things:
- A primary residence, somewhere that meets all of you and your family’s needs.
- It is a house you rent out and provides a consistent income with low overhead costs.
- A vacation or a weekend home.
If your home is vacant or costing you in repairs or tenant turnover, it might be time to consider selling it.
Is there another property that would better meet your financial needs?
What property are you potentially missing out on because your money is tied up in a different one? This is called “Opportunity Cost.” Take a look at what’s out there. Is there a better place you could be investing your money? Consider the long term costs of being tied up in one property. It might make sense to some but for people who move careers and travel a lot that might not be the most efficient option.
Do you feel cramped?
People buy their homes for what they need at the present moment. A young couple will generally start off with a single or double bedroom house and after some time a house full of kids might require a 5 bedroom home. As families grow and acquire more things, they often require more space. Imagine what having a little extra space could mean for you and your family!
Do you have “too much house?”
On the flip side, people often grow out of there space. Keeping up with a home that is too large like a 5 bedroom home with only 2 occupants can be stressful! Retirement might force you to reconsider your priorities.
Is this really the house you want to be in forever?
There is no rule that states you need to stay in the same home forever. Those days of a government pension or the security of company you spend 30 years working for are but a distant memory.The beauty of real estate is that you can move at any time you want. Think about your future, a few years down the road. Can you picture yourself in the same place, or do you see yourself somewhere different? Take our a piece of paper or type out the perfect day for you in 20 years, where are you when you wake in the morning? Whose there with you? How will spend the rest of your day? Have a vision of where you want to be.
Does the house need repairs?
Maybe the house is old and is in need of repairs you simply don’t want to make. Making repairs on a house you don’t really want can not only be expensive, but stressful and burdensome. You can choose to work with a reputable contractor to renovate your house or choose an easier option like moving into a home that has already been updated to your modern tastes.
Do you have equity in the home?
If you are able to sell your house, pay off your mortgage, and have some left over to put down on a new house, selling might be right for you! If you are able to get at least 20% down for your new home in a great area, even better!
What is owning your house costing you?
How much are you spending each and every month to own the house? The costs of homeownership go well beyond a mortgage payment. You will need to consider other ways you are spending money on the house such as taxes, insurance, and maintenance.
If you have been thinking about selling, it likely means that it is the right time! There isn’t one answer that is right for everyone! Consider your options and make the decision that works best for you!
