To Sell or Not to Sell

Should I put my home on the market now or wait? At some point nearly all home owners ask themselves this question.

Selling a home is one of the biggest financial transactions you’ll ever make so it’s important that you think through all of your options and motivations before coming to a final decision. Make sure you’ve weighed the pros and cons, understand the financial implications and realize what a huge time and emotional commitment it will be. Considering the following things will help ensure you make the right decision.

Reasons to Sell

• Timing. The housing market fluctuates so make sure you understand where it is in its cycle before you sell. If interest rates are low and the market is hot, it’s probably a good time to take the plunge.
• Space. If your family has new additions and you’ve outgrown your current home, it is probably best to sell. However, before you do make sure you also consider remodeling. It may end up being more cost effective to simply add an additional room.
• Marital Status. If you’ve recently divorced or been widowed you may need the extra funds to deal with your situation. Just make sure to consult with a lawyer or financial adviser before you decide to sell.
• Equity. If you’ve been in your house for several years there’s a good chance you’ve built up enough equity in your home.
• Moving. Whether you’re changing jobs, wish to live closer to family, or retiring to an active adult community, you’ll probably need to sell your current home in order to purchase a new one.

Reasons Not to Sell

• Time of Year. Buyer’s typically purchase new homes in the spring and summer so if it’s winter it may be smart to hold off for a few before you put your home on the market.
• Lack of Funds. Are your finances tight right now? Do you have enough money to cover moving expenses and agent commissions? Rather than selling your home it may be more prudent to refinance the one have.
• Interest Rates. Higher interest rates can bring several consequences with them: lower home values, fewer buyers, and more homes on the market. If you aren’t under pressure to move it’s probably better for you to hold off selling your home until the market improves.
• Bad Home, Good Location. Just because you aren’t 100% happy with your home doesn’t mean you should sell it. If the schools are good, you like your neighborhood and you are close to work, using the equity in your home to finance a remodel just might be the smarter choice.

There are a lot of reasons why selling your home may or may not make sense for you right now. However, if you do your research, study your own unique situation carefully and go over the pros and cons, the right answer will eventually emerge.