According to the 2021 census, 65.7 percent of American’s own a home. That means if you are employed, own a home, and have cash in the bank, you are living the American dream. You are settled in and doing what people all over strive to do, or are you?
Many own homes but believe that they will move into another home at some point in time. Simultaneously, some may question why that decision, deciding on the right time to sell a home, often leaves homeowners in disagreement and discomfort if you choose to stay in a house that no longer suits your needs.
Before you go running to type in “list my property” on Google, there are several reasons for selling your current home and different ways to achieve it successfully. Including that you don’t like the house or neighborhood anymore. However, the top three reasons a family is ready to sell their home are listed below.
1. Your family has outgrown your current home.
You may have moved into your dream three-bedroom home with a fish tank, a dog, and a new husband. However, the honeymoon is over, and now six years later, I have added three kids and a cat. You know it’s time to sell your home because you need to upsize to accommodate your family’s needs. When your current home does not meet your everyday needs, it is time to sell it.
Sure, the kids will grow and leave home, making your rationale for keeping your first home considerable, but keep in mind, a lot more adult children move back home after college to get a handle on a career and finances. Also, as the kids grow, they accumulate more stuff. If finances allow, there is no need to live restrictively. If you can afford a larger home, a growing family is a reason to do so.
2. You have equity in your current home.
Whether intentional or not, your home purchase was an investment. The return on your investment is called equity, and calculating whether you have equity in your home isn’t a complicated mathematical formula. Figure out what your home is worth or your home’s market value from a professional agent, check your most recent mortgage statement for how much you owe your home and then subtract.
The balance is the equity you have in your home. If you’ve been waiting to be able to get some equity out of your home for the maintenance and good care that you put into it, your equity balance is your chance to do just that.
Unless your house is paid off and you are mortgage-free, you want enough equity to pay off your current mortgage and enough to pay the agent and any other fees that arise from the sale of your home. Since homeownership is on the rise and prices are going up, chances are you will have some equity. Meaning you may have money to put in the bank after paying the bills, and after that, having some money in your pocket or the bank after selling your home is a return on your investment.
3. You have a real estate agent who you trust.
It may have taken you a lot emotionally to sell your home, but you are ready. Having an agent, you trust will take you from being prepared to sell your house to be eager to sell it. An agent you trust can tell you what the market is like, what you need to do to get your home ready for the sale sign, and if selling makes financial sense for your family. Some other things that you want your agent to do are:
- Answer phone calls and emails about your home
- Perform market analysis
- Schedule showing your home
- Give accurate updates
- Handle required paperwork
- Market your home
- Advice and negotiate offers
As you can see, there are several reasons for selling a home. However, three reasons that usually result in a sale sign are that a family has outgrown their home and need more space, there is equity in the house and a perfect time to sell, and you have an agent you trust to get the most out of the sale of your home. When these three things are aligned, there is no better time to consider selling your home.