How do you know when it’s time to sell?

Are you torn between selling your home and staying put? It can be hard to know whether it’s time to sell, because it’s certainly not a choice to make lightly! Selling your home is a permanent decision that can either have a positive or negative outcome, largely depending on if you choose the right time to sell. While we are in a seller’s market, that doesn’t always mean you should automatically assume selling is the right move. Yes, you should take the market into account, but there are several other factors you need to consider before you choose to sell your home. Here are some of the main items you need to keep in mind to help you decide how to proceed. 

Consider your home’s value

Of course, you will need to think about how your home will perform in this market. Odds are, your home has appreciated in value over the course of the last couple years. The pandemic and low interest rates have fuelled a seller’s market that has caused high demand and short supply for homes. Right now, market conditions are about as tight as they can be for buyers, meaning your home will be considered quite valuable and you can likely get a nice return on your investment. Inflated prices are resulting in big sales for current home owners. If you’re considering selling and wondering if it’s a wise move financially, you can be fairly sure your home will be worth more today than when you bought it.

Is your home recently renovated?

If your home has been recently updated, it might be a good time to sell. Many people renovate their homes in preparation for selling to increase its value. This is because a home with modern renovations is often more desirable and in better condition. An updated home is usually more appealing to buyers and will generate a higher value. If you have completed any renovations recently, your home is likely on the more valuable end. If you want to sell, but you haven’t done any upgrades in a long time, consider completing some fixes before listing your home. We recommend focusing on the kitchen and bathrooms, as these are often the most important points of a home.

Think about your needs

Apart from financial sense, you also need to consider your own personal needs as a potential seller. Your situation is likely different from when you bought your home, meaning you will need to sit down and think carefully about your circumstances. Maybe you have a bigger or smaller family living with you now, your size requirements or location preferences have changed, or your income is different. Your housing choice should reflect what suits your needs best. If your home is still serving its purpose for you, this might be a reason to say put. However, if your home is no longer meeting your needs, it might be time to sell.

Think about your next steps

Remember that if you decide it’s time to sell your current home, you will need to find somewhere else to go. That often means buying a new home. In the current market, housing prices are skyrocketing and supply is low. What benefited you as a seller could come back to bite you if you also have to play the part of a buyer. Ask yourself if you will be able to find a new home in this market, and if you can afford to buy a new property. Before you know whether it’s time to sell, you will need to consider what kind of position this move will put you in.

Take home equity into account

What’s the current situation of your mortgage? Depending on your home equity, and whether or not you’ve recently renewed or refinanced your mortgage, this will impact if it’s a good time to sell. If you’ve lived in your home for a long time, you’ve likely built up home equity by paying off your mortgage over time. The more equity you have, the more money you will get from selling. However, if you’ve recently refinanced your mortgage, you might face big penalties for breaking your mortgage terms to sell. This will cause you headaches and cut into the money you will earn back from selling. Take some time to consider your mortgage situation before selling, so you don’t end up paying big penalties.

It might not be a simple decision when you need to make the choice to sell your home or not. You will have a lot to think about, and your individual circumstances will impact whether it’s the right time to sell. The good news is you can turn to a trusted mortgage broker to help you through this process! Brokers can lay out your options and guide you down the path that suits you best. This will make your decision far less confusing and complex, and you will have more assurance in your choices.

If you have any questions about buying a property or your mortgage, give us a call at Centum Home Lenders! You can reach us at 506-854-6847, or get in touch with us here.