How Do I Know When it's Time to Sell My Home?
Many factors are in play when you determine if it’s time to sell your home. You may even be wondering if right now is a good time. Whether you feel a pressing need to sell or are just considering your options, the team at Jeff Cook Real Estate can help you make the best decision. Here are some major considerations for when you should or should not sell your home.
When To Sell Your Home
It’s easy to get caught up in market conditions, news reports, and many other issues that can impact a decision to sell your home. The following factors all make it a good time for you to consider selling your home in the Carolinas.
When Interest Rates Are Low
Low interest rates means that buyers seeking a new home will pay less interest on a mortgage loan. This means their dollars will go further, allowing them to purchase more home for their budget. This also creates more demand, as many people want to buy when interest rates are low. You can benefit because greater demand and buyers with more money to spend can allow you to sell at a higher profit.
When the Supply of Available Homes Is Low
In a “seller’s market,” there are fewer houses for sale and more buyers looking to find a home. This gives you, the seller, appreciable leverage, or negotiating power. You can set a higher price and give away less on negotiated terms because your home is in greater demand and available options are few.
When It’s Time to Relocate
Whether you have the itch to break up and start over with a new home, or you need to relocate for your career, you may be looking to sell your current home and buy a new one elsewhere. You may need to downsize, upgrade to a home with more space, or just change locations. A voluntary or involuntary move can place equal pressure on you to sell your Carolina home.
When You Have Lots of Equity
Equity is your property’s actual value after subtracting any liens or other debt attached to the property. As your home’s value increases, you stand to earn a significant profit from selling. This happens as you pay down the mortgage over time, make improvements that raise the home’s value and attractiveness, and other market conditions make your property of greater value.
When NOT to Sell Your Home
Every issue has pros and cons, and selling your home is no different. Here are some circumstances that make it better to hang on to your existing home.
You Have Little Equity
Just as lots of equity creates desirable circumstances for selling your home, not having much equity makes it a poor time to sell. With much of the mortgage left (or even a second mortgage) and closing costs, you may only break even with a sale at the wrong time, or even have to pay some out of pocket just to get rid of it. If you have missed a few mortgage payments or market conditions have actually caused area property values to fall, you may want to hang on to your home for now and wait for better conditions.
There Are Too Many Homes Available
If your local South Carolina housing market is flooded with more homes than buyers — a “buyer’s market” — you should hang on to your home for now. Competing for buyers’ attention and being forced to make expensive compromises places you in a poor selling condition. It is not an impossible situation, but it is definitely one that should give you pause.
You Can’t Afford to Buy Another Home
Of course, if you’re considering selling your home, you will need another place to live. Can you afford to sell your existing home and make a reasonable down payment on a new one where you wish to live? Will your profit from selling cover your remaining mortgage and closing costs, plus leave a respectable profit? If there is any doubt about having enough finances to sell and buy another home, you should wait.
Your Home Needs Work
What will your home look like to potential buyers? Could the kitchen use a modernization or remodel? Are the bathrooms outdated and worn? These and other issues not only make a home less desirable, but they could force you to lower your asking price so a potential buyer will see the home as a good deal/fixer-upper.
Are you wondering if now is the best time to sell your home in South Carolina? Jeff Cook Real Estate can help! Call or message us online today to speak with a skilled and experienced agent.