When Should I Sell My Home?
Real estate markets have been creating quite the hubbub over the past few years. Whether it be because of the economic crash of 2008 or the great wealth that has been amassed by several individuals since then there has been a spike in interest regarding real estate. For most of us though, our exposure to real estate is limited to buying and selling our residence. If you haven't sold a home in a while, or at all for that matter, you may be wondering why someone would do such a thing. Why do people sell their homes and should I sell mine?
The answer to that question, unfortunately, cannot come from us; that is an answer that only you can find (with help from a qualified financial advisor and or real estate agent). And, in this article, we are not trying to sway a person one way or another or convince them that they need to list their home. No! That is the last thing we want to do. What we are trying to do is to help you understand the circumstances and situations that cause people to make the choice to sell their home.
1. They need a change of pace
Throughout most of our lives, we come across a point when things get mundane or tiresome. We get bored with some aspect of our life and we just need a change. This is how some people feel when they decide to list their houses. They could decide they want a smaller house, or a bigger house, or maybe want to try living in a split level home, or maybe an alternative home - the possibilities are endless. So, if you are feeling like you just need to shake things up, and you are in a financial position to do so, maybe you should consider selling your home in favor of a different one.
2. The change jobs
For most people, the number one factor in choosing where they live is employment. People need to be able to make money to pay for their homes, so they will need to find a home that allows them to go to work when they need to. This means that if their work has transferred them to a different city, or even just the other side of the same city, they will be considering selling their home to buy one closer. Now, if you get let go from a job or decide to quite, don't just off and sell your home, it won't result in any quick cash. Once you have found a new job, then you will want to evaluate whether you are close enough to stay in your current home or if you need to move.
3. The house is irreparably damaged
Life can be unpredictable, but if there are two things that we can always count on, they are entropy and Murphy's Law. What are entropy and Murphy's Law? Well, in short, entropy means that everything will slowly degrade and decay or wear out due to time, use, or abuse; Murphy's Law, on the other hand, says that anything that can go wrong will go wrong - two things that any home owner will get used to very quickly. This means that houses don't last forever. Even with the best of upkeep and care, some houses just become so damaged or worn-out that they are uninhabitable, and in that case, the owner will need to sell the home, or tear it down to build a new one.
4. The house has gone up in value
Almost every homeowner's dream is to hear that their house has gone up in value, that they have made money on just living in their home. If the increase is large enough, then the person may just want to collect the money the property has appreciated and move on to a different house before it loses its value. This, however, really depends on your financial plan and the other circumstances that you are facing.
5. The house has lost its value
On the other side of that coin, there is the possibility that the house has lost value (or devalued). This can be a nightmare for a homeowner if they were planning on the home making them money in the long run and for many, this has happened. So, what are they to do, sit and hope that the value goes back up? For some, that is the answer, but for others, they just want to get out before the value drops even lower. This can be a dangerous move, however. As we alluded to earlier, the real estate market goes up and down on a daily basis. Don't make rash selling decisions dependent on price unless that has been your plan all along.
6. The neighborhood's vibe is shifting
Many people choose the homes they live in for the aesthetics of the neighborhood in which it was built, which is all good and fun, until that atmosphere they fell in love with starts to change. With the passing of years and the addition of new construction to an area, the atmosphere and aesthetics can really take a turn and change into something they didn't want. This can cause a person to move. It doesn't always have to do that though; sometimes change is good and it can help the homeowner. It all depends on the perspective.
However, if you see things start to change in your neighborhood, then you might want to look into what those changes are doing to your area and consider leaving, especially if it has the potential to devalue the house.
7. They have new dreams
Now, don't get us wrong, there are many more reasons to sell a home than are listed here, and everyone's circumstances are completely different. Like we said earlier, sell your home is a choice that you need to make - it can't be made for you. Contact a credible financial advisor and or a licensed real estate agent (like one from the Hughes Group), they can help you understand the pros, cons, and caveats to selling your home.