How To Know When It’s The Right Time To Sell Your Home

Before that for sale sign went up in your neighbor’s yard, they might have spent hours and hours thinking about moving, and talking to friends about moving, making pros and cons lists and just generally agonizing over the decision. I get it. There’s a reason moving consistently makes the list of most stressful life events. I can make the actual process of moving fairly smooth for you, but it’s a huge, emotional decision for most people. If moving has crossed your mind, you might be wondering how to know when it’s the right time to sell your home.

Sometimes the decision to move is out of your hands, like when a job transfer moves you to a new city, or when divorce or marriage necessitate a change of location. It’s the other times, when the choice to move is 100% yours to make, that the decision is a tough one. You might be worried about how moving is going to affect your kids, or worried about the responsibility of a bigger mortgage.

Despite those worries, there are a few key indicators that help you know when it’s the right time to sell your home. Here’s a list of questions to ask yourself when considering a move.

1. How much equity do I have?

According to Dave Ramsey, “being financially ready to sell your house comes down to one factor: equity.” Equity is the difference in what you owe on your mortgage versus what your home is worth. Positive equity is when you owe less than you can sell your home for, and negative equity is when you owe more than your. home is worth.

Home values have really been on the rise lately, so negative equity is not so common right now, but if the price you sell for won’t pay off your mortgage (or if you just break even), it’s probably not the right time to move.

2. Can I afford enough of an upgrade to make it worth it?

Let’s face it. Getting your home ready to sell, then packing everything up and moving, just to unpack it all again is a hassle. You want to make sure that the advantages of moving are enough to outweigh the emotional and financial costs of moving. Before you list your home ask yourself if you can afford to make enough of an upgrade to make it worth it. Sometimes the upgrade is in space, or number of rooms, or school district, or neighborhood. But whatever the reason for moving, ask yourself if you can afford to make a significant change. Getting close to your desired school district is not the same as being IN the school district, and having almost enough bedrooms is not the same as having enough. If you hang tight where you are for a few more years and those desired upgrades become attainable, then it’s worth the wait.

But if you can afford the upgrades you need and want, then go for it!

3. Is your home in selling condition, or can you get it there fast?

We recently shared an article about which renovations increase your home value and it’s got some great tips. The key is to make your home as move-in ready as possible so you can get top dollar for it. If you are considering selling, walk through your house with critical eyes and make a list of needed renovations. Ask yourself if you can quickly make needed repairs to get your home ready. If it’s going to take a bit to be ready, start repairs now. At the very least you’ll get to enjoy your renovated home.

4. Is the market in your favor?

Although the housing market follows a national trend, it’s important to look closer to home, in your own city to get an accurate picture of what is going on. Find out where the advantage lies, with sellers or with buyers? A seller’s market is when there’s a shortage of homes available in the area, meaning you can get top dollar as a seller.

Another area to check is interest rates. When rates are low it’s a great time to be a buyer and if you are considering selling, you are likely buying too.

5. Can you afford the costs of moving?

There are numerous costs associated with moving beyond just the price of the new house and closing costs. Ask yourself if you have enough cash flow to cover the necessary costs. Here are a few moving costs to consider:

• Staging costs: Storage Unit Rental for excess household goods, or professional staging services.

• Seller Concessions: These are the unexpected repairs requested by the buyer after the inspection. Of course it is the seller’s choice whether to move forward with requested repairs after the inspection, but typically some repairs are needed.

• Moving costs: Professional movers, moving van rental etc.

In the end, the choice to sell your home is both an emotional and financial decision. Weighing the pros and cons and considering what dissadvantages there are to NOT MOVING can help you feel pulled in one direction or the other. Ultimately, no one can tell you for sure how to know when it’s the right time to sell, because it’s such a personal decision, but considering the questions on this list will help you take a deeper look at your options.