How do you know if it’s the right time to sell?
If this is something you’ve been wondering lately, we’ve got some good news: It’s a great market for sellers right now. Limited inventory continues to drive up home prices, and the latest data from the National Association of Realtors shows that recent listings spent an average of just one month on the market.
With these incredible factors in mind, let’s now turn to some relevant advice by businessman and author Dave Ramsey. According to him, knowing whether you’re ready to sell comes down to identifying these seven signs:
1. Equity is on your side. During the market crash in 2008, millions of American homeowners found themselves with negative equity. This meant they owed more than their homes were worth. But, today, home values have been on the rise. To determine how much equity you’ve built in your home, simply grab your latest mortgage statement and find your current mortgage balance. Next, find your home’s current value by asking an experienced agent to run a free comparative market analysis. Once you have these two numbers in hand, subtract your current mortgage balance from your home’s estimated market value. The result of this equation will be a good approximation of your current equity position.
2. You’re out of debt and have cash in the bank. Being a money-smart homebuyer by taking a hard look at your finances will be key to your success. If you’ve got a good store of emergency funds reserved, this is a positive sign that you’re ready to make your next real estate purchase.
3. You’re ready for a home that better suits your lifestyle. If your current home doesn’t match your current needs, it may be time to make a change.
4. You can cash-flow the move. Don’t get so excited by the thought of your next home that you forget to account for the cost of leaving your current one. Hiring professional movers, contractors, stagers, and more are all expenses to consider. That said, small changes can go a long way in getting your property market-ready.
5. You’re emotionally ready to sell. Even if you are financially stable enough for another home purchase, the matter of selling your current home can still be a major emotional drain. You must be committed to facing potential difficulties associated with the listing process before you can think about reaping the benefits of a home sale.
6. You understand the market. No one can predict exactly how the market will perform, but staying on top of developing trends will make you more successful as both a buyer and a seller.
7. You have a real estate agent. Each real estate market is unique, so consulting an experienced local Realtor will help you discern whether selling is advisable given your particular circumstances. Ultimately, having a knowledgeable professional working on your behalf will be the key to your real estate success.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.