How do you know when it’s time to sell your house? This can be a fraught question for homeowners who have invested time and effort in their beloved homes. There’s no denying that selling a home is a highly charged emotional decision, but for many people, the time will come when it’s clear that they should sell their house. Read on to see what signs you should be looking out for.
You’re financially ready
Take a look at your latest mortgage statement and see what your current mortgage balance is. Next, request for a free comparative market analysis from an experienced San Francisco realtor in order to determine your home’s estimated market value. Once you have both figures, subtract your house’s current mortgage balance from your property’s estimated value. The resulting figure is how much equity you have in your home.
Ideally, you’ll want to have positive equity, which will let you not only pay off your current mortgage but also leave you with enough money to put down at least 20% of the down payment for your future home. The more equity you have, the better, because it means that you’ll be able to finance moving expenses, closing costs, and maybe even a bigger down payment.
If your equity won’t cover closing costs and moving expenses, make sure you’ve got enough money in the bank to cover these payments. You’ll also need to set some funds aside for staging and renovation, depending on the state of your current house.
Even if you have positive equity, you should still take a good look at the rest of your finances. If you have enough money in your emergency fund to cover your living expenses for at least three to six months and you don’t have any other major debts aside from your mortgage, then that’s definitely a sign that your finances are in good shape, and that you’re ready to buy a new house.
Your house no longer suits your lifestyle
Your cozy two-bedroom starter home was perfect when there were just the two of you, but now you’ve got three kids and your youngest child’s crib has taken over your walk-in closet. Or maybe you’re looking to downsize because all of your children have grown up and moved away and your five-bedroom house is now too big for you. Perhaps you want to move closer to your parents or grandkids, or you’d like to live in a neighborhood with an excellent school district.
It’s normal to experience major lifestyle changes such as additional children, retirement, and even the loss of loved ones, but you’ll want to make sure that your house continues to meet your needs at every stage in your life. There’s no reason why you shouldn’t downsize if you no longer want to take care of your large yard, or if you’d rather not walk up a flight of stairs to reach your bedroom. If your house no longer suits your lifestyle, then it may be time to sell.
Emotionally, it’s time
If you love your current house but you’re ready to move on, make sure that you’re also emotionally prepared. You should be ready to leave the space where your family has thrived and made many happy memories.
You may also need to make minor or major repairs, which can cause inconvenience and will also cost time and money. In addition, you need to commit to having your house ready to be shown. It may take anywhere from a number of weeks to a few months to sell your house.
Be prepared to have possible buyers point out flaws in your beloved home. Once you find a serious buyer, you’ll also need to prepare yourself for negotiations, which could become drawn out. This is not to say that you shouldn’t sell your house. Just make sure that you’re emotionally ready.
You’ve found a reputable real estate agent
Selling a house is a complicated business, so you’ll want to make sure that you work with a qualified professional. The best real estate agents will give you an idea of the state of your local housing market and will be happy to walk you through the process of selling your house. They will also give you honest advice, so you’ll know what’s best for you and your budget.
A great real estate agent will let you know what repairs or updates will vastly improve your home before it’s put up for sale. They will also assist you in determining the right price. Excellent real estate agents will also have an extensive network, so they’ll be able to effectively sell your home.
Want to work with the best San Francisco real estate agents? Get in touch with Nina Hatvany and her team of experienced San Francisco Realtors today by calling 415.710.6462 or by sending an email to team(at)teamhatvany(dotted)com.