If you’re a homeowner and reading this, I’m guessing you’re asking yourself…should I sell my home now? Should I sell my home this year? Has the real estate market bounced back?
All valid questions.
While there are plenty of agents out there that would argue now is always the best time, I’m not going to. Instead, I’m going to tell you that while the time is always right to sell, “your time” to sell “your own home” is dependent on your goals and situation.
So in response to should I sell my home? You should sell your home when you’re ready.
Considering solely the market, now is a great time to list. The Los Angeles Times recently published an article showcasing the rise in home sales. In fact, if you compare January 2016 home sales to those of January 2015, you’ll notice a 7.3% jump.
As we currently stand, winter is ending and spring beginning. Inventory is low and subsequently competition with comparable homes for sale is low. As a result, there is an increase in opportunity to present your home to more interested buyers and a higher likelihood of selling your home faster. As you read in the blog 5 Tips for Selling your Home During the Holidays, there are benefits to selling, regardless of time of year.
Now if we go off conventional wisdom, if you’re on the fence and asking yourself, should I sell my home, then Spring is the prime market.
Spring is the start of the busiest market to sell a home. House hunting increases in convenience, as the weather is warmer, daylight is longer, and the drive to move into a new house before the next school year rises. With an increase in convenience of course comes an increase in buyers.
More buyers house hunting from a tighter home supply can result in an increase in home prices and with less comparable competition lead to an increased chance of bidding wars and decreased demand for repairs.
Please note though, while no one wants to sell their home below what they owe or under value, don’t fall into the idea that you have to chase the market, in particular if you’re going to sell and subsequently buy another home. The truth is, if you’re in a market that you can sell high, then you’ll be buying high and if you can sell low, you’ll be buying low. Generally speaking, either way can be a wash.
Let’s look at rates. If you’re wondering should I sell my home? Then based on interest rates, I have to say now is a good time. Rates are low with nowhere to go but up. With that, you can sell and finance a new purchase at an even more affordable rate.
Let’s look at some other considerations to the question…
Should I sell my home? Yes…if you’ve outgrown your existing home
If we estimate that the average individual spends 15 hours of their day at home, even more if they work from home, then obviously one’s home has to be a place of comfort and practicality.
If you have a new addition to the family, perhaps a new child or an in-law and quarters have become too small for your needs, then take advantage of the reduced rates and consider moving into something a bit larger.
Should I sell my home? Yes…if your house has outgrown your family
Unlike the previous scenario, there are situations where children have headed out to college or moved out to start their own lives. With fewer residents, your current home may just be too big for your own good. I touched on this very topic in a previous blog, The Upside to Downsize. If you’ve recently joined the empty nesters club, then selling your home now and downsizing comes with many benefits. To name a few, you can reduce your house payments, save on operating expenses, reduce cleaning time, require less maintenance, and subsequently lower other life stresses.
Should I sell my home? Yes…if you can no longer afford it
I know things happen. There are a variety of reasons why someone can no longer afford their home and I’m definitely not one to judge. But if you’re spending the majority of your household income on a mortgage, then you may want to consider selling your home and moving into something more affordable.
I once read a quote that life is too short to just work and pay bills. So if you find yourself just spending every ounce of your energy working to earn just enough to cover your house payment, then it’s not worth it on your finances, relationships, and health.
Should I sell my home? Yes…if you can afford and require more
On the other end of the spectrum, if you’ve reached a financial point in your life where you can comfortably afford the home you’ve worked so hard to one day obtain, then there’s no better time than now to sell your starter home and purchase the home you’ve dreamed of. Just make sure you don’t over extend yourself.
Should I sell my home? Yes…if you want to take advantage of the rising rental rates
If you look at rental data or just ask any renter, you’ll notice rents are constantly rising. With the steady rise in rental rates, an increase of renters are entering the housing market seeking to purchase a home. What does that mean for a home seller? It means that there is a strong pool of home buyers looking to purchase a home and with the reduced interest rates and an increase in financing programs, there are plenty of qualified buyers to sell to.
In conclusion, should you sell your home?
Selling a home requires setting a price, preparing the house for the market, implementing a marketing strategy, holding open houses, negotiating with buyers, dealing with contracts and forms, and much more…that’s one reason why working with a real estate agent is strongly recommended. But while all these are vital steps, one of the hardest steps is deciding whether to sell or not to sell.
There’s no single factor for determining if and when to sell your home. Rather, work with an honest agent and look at the entire picture.
Determine your goals and why you want to sell your home? Can you afford your current and potentially next home? Do you have enough equity for a down payment? Are you on a time constraint to sell your home? Are there external or lifestyle elements that you should consider? Look at these, consider the thoughts above, speak to an agent like myself, and then determine whether it’s your time.
So what’s next? Curious to the value of your home? Find out how much your home value has increased with the rise in house prices and if you’re entertaining the idea of selling, contact me so we can discuss if you’re ready to sell and how we can sell your home faster and for more money.