The real estate market over the past two years has certainly defied expectations. While the pandemic wreaked havoc on many other parts of our lives, it actually caused the real estate market to surge. For many reasons, more and more people decided that it was finally time to buy a home. However, there have been fewer people that have decided it’s time to sell, and there are fewer homes on the market than there are buyers who want them. If you’re a homeowner, how do you know if now is the right time to sell? Here’s what you should ask yourself.
Does the market favor sellers?
First of all, now is a great time to sell because we’re in a seller’s market. This means that there are more buyers in the market than sellers, so sellers typically have the upper hand. When you sell your home in a seller’s market, you’ll have a good chance of making a sizable profit on your home. With mortgage rates on the rise after record lows for the past two years, we may not have a seller’s market for much longer. If you’ve been on the fence, then you should know that it’s time to strike while the iron is still hot.
Are home prices rising?
Another question to consider is home values in your area. Are they on the rise or are they falling? Obviously, it’s best to sell your home when prices keep going up. If you’re curious about home prices in your area, then search for recently sold homes online that are comparable to yours. How much are those comps selling for? If you like the price you see, then it may be a sign that it’s time to sell.
Am I having trouble affording my house?
It’s a terrible feeling knowing that you’re having trouble meeting your financial commitments. If your financial situation has changed in such a way that you’re not able to pay all your monthly bills, then it may be time to sell your home. Selling now means that you can find a home that fits more comfortably in your budget so that you aren’t so stressed.
Does this home meet my current needs?
People’s needs change over time. Those features that you needed in a home when you first moved in may no longer be what you need now. Perhaps you had a growing family but now your kids are off to college. Or maybe you purchased your first home when you were single and now you need more room for the family you hope to have. Perhaps your job changed and you have a longer commute, or you want to live closer to family to care for an aging parent. If your home no longer meets your current needs, then that’s often a sign it’s time to sell.
Do I have enough equity?
Finally, you should consider how much equity you have in your home when you’re thinking about selling. If you sell soon after buying, then you may not have built up much equity in your home. That means you could lose money when you sell, or not have enough leftover from the sale to fund the purchase of your new home. Let your equity help you make your decision about whether or not it’s time to sell.