10 Signs it could be time to sell your home
How do you know whether it is the right time to sell your house?
If you've been toying with the idea of a new home or drooling over properties you imagine yourself living in, then what would it take to put the wheels in motion?
How to know when to sell your house isn't an easy decision to arrive at. Obviously, no-one wants to purchase a new property, then see it decrease in value and ultimately have to wait for prices to rise again. But, it's important to know that every market is different - while some markets boom, others fall or stay stagnant.
But if you were still wondering about selling, you should consider a range of influences that may affect you. From your own financial circumstances, current market conditions and more.
Wondering whether it's the right time for you to make a move? Here are ten sure fire signs that it's time to sell.
1. You have built equity
If you have owned your home for five years or more, and paying off your mortgage, it is likely that you will have built up a good amount of positive equity. Being in the position of having positive equity can be one of the best financial factors in deciding if you are ready to sell up.
What is equity? It is the difference between the current market value (or the sale price) of your home, less any money you owe on a mortgage. In a falling market, this could be a negative figure - meaning you owe more on your mortgage, than the property is worth. Positive equity is when you owe less than your home is worth.
EG: Value = $500,000 Mortgage = $600,000 - Negative equity of $100,000.
EG Value = $500,000 Mortgage = $100,000 - Positive equity of $400,000.
2. You are financially ready to move
Not only have you built up positive equity, you have managed to accumulate extra savings.
The costs of selling a house quickly stack up! It is best to have a combination of positive equity and extra savings. Keep in mind when considering the question "should I sell", the costs of moving, minor (or major) repairs that might be needed to get your home ready to sell, and whether you will be needing a much larger mortgage for you new home. If you are looking to upsize and need a larger mortgage, the Bank will want to know that you have no other debts and at least three to six months worth of genuine savings accrued.
3. You are emotionally ready to move
Are you in the right emotional state to cut ties with your current home? Perhaps you are actively scouring the real estate for sale internet sites and picturing yourself in a new place!
Selling a home is an emotional and stressful process! However, generally once you have made the decision to sell, you "fall out of love" with your current home and just cannot wait to find your next dream home. Giving yourself time to come to grips with all that is involved in selling, is a good step. You will need to be mentally prepared for what is coming - preparing your home, choosing your agent, having positive and negative feedback from buyers! This doesn't mean that you should not sell - just that you give yourself sufficient time to be ready.
4. You are ready to downsize
Once the children have grown and moved into their own homes, many homeowners choose to downsize from their large family home, to a more manageable home that is easy to maintain, both inside and out. Giving you the time and energy you need for grandchildren, holidays and just enjoying your retirement!
Downsizing is a great way to provide you with a retirement nest egg - which needs to be spent wisely - to keep you in the lifestyle you aspire to!
5. Your home is too small
Has your family grown since you bought your current home? Have you accumulated cars, boats, trailers, caravans you need to park securely? Are your parents elderly and you want them to move in with you? You need more bedrooms, bathrooms, storage, shedding? These all help you decide if your home is no longer suitable for your changing family dynamics.
6. Your location is no longer suitable
The dream location that made you buy this home, no longer works for you. You may have changed jobs, your children may be wanting to attend schools, or universities in a different location. Your current location may lack suitable medical facilities, parks, public transport, or you just desire a change from city to country or vice versa!
7. Your neighbors just sold for a great price
You have kept an eye on what your neighbors just sold for and if you got a similar price you would be set to achieve that new home, boat, caravan etc that you have always wanted. You keep hearing that it is a "sellers market" and you don't want to miss the opportunity. This would be a good time to check with a real estate agent in your area, to find out what their estimate value of your home is. You could then consider whether selling would give you the benefit you seek.
8. Current market conditions look good
If the market is soaring in your local area, yay, it is likely that you too will secure a great price for your home, setting you up for the next step in your home ownership journey.
Generally, it does not matter when you sell and move to your next chapter, as most people buy and sell in the same market environment. You need to focus on what your "changeover" costs would be, and whether the change will benefit your family. Trying to "time the market" is like having the illusive "crystal ball". What is important in any market, is getting a good price for your home and purchasing a quality home to move into.
9. Renovating won't benefit
Does your current home need a bit of TLC, would it benefit from a renovation? Will doing a renovation add value to your property, or will you over capitalise!
These are questions on everyone's mind. You can spend a few dollars on a good clean up inside and out, and repair minor items, but should you go all out and do an expensive renovation to maximise your sale price?
Generally, if you were to spend $10,000 on a renovation, you would want to achieve an additional $20,000 on your sale price. The are no guarantees that this will happen, and too many times a seller puts in a brand new kitchen, but the first thing the buyer does, is demolish and put in their own dream kitchen.
Renovations can help make a sale easier, but be careful with the amount you spend, as it will not necessarily ensure a higher price. Discuss with your real estate agent and get some costs from trades before you make any decision. Remember too, that it can be some time before the renovation is actually completed, and the market conditions may have changed in that time.
10. Get advice
You've gone through the steps above and analysed what you feel your options are. Now is the time to get further advice around how to achieve your goals and do this as stress free as possible.
Choosing the right agent who listens to your needs, takes into consideration the dynamics of your family situation and works with you, will help you plan the next steps and get you up and running on the market. Helping you get into your next home.
The time is right
You have done the hard yards, you have worked through the steps, received the right advice, given the estate agent the green light, and you are away!!
Knowing that you are financially and emotionally ready, know what is happening in the current market and nodding your head at the above check list could be a sign that selling now could be a great thing for you and your family's future!
Want more great tips on how to improve your property? Engage one of our fantastic agents to come through your property and give it an appraisal. They can also provide you with tailored advice on what they recommend you update before selling to achieve your property goals.
Good luck and happy selling
