You have likely seen and heard in the news that real estate prices are on the rise and housing is bouncing back. This might make you wonder if it is time for you to sell and make a move. Only you know when you are ready but if you have waffling back and forth wondering about it here are some things to consider.
1. Equity
During the 'Bust' a huge percentage of homeowners saw their equity evaporate, and many couldn't pay off their mortgage(s) with proceeds if they sold. Prices have been improving each year since 2012, so chances are you may now have more positive equity in your home so you can walk away from a sale with money to apply to a new home or tuck away for retirement or some other life dream.
2. You are bursting at the seams
If you bought your first home in the 'Bubble' years, when you were single or BC (Before Children), your home may now be way too small after that 2nd or 3rd child... or after an elderly parent has moved in. You may have been wanting to sell for some time now, but were stuck because of negative equity. This could be the right time to look at buying something larger... rising equity due to both rising prices and more time paying down your mortgage and increased savings/investments may now enable you to make the move.
3. You have joined the 'Empty Nester' club
Maybe your oldest child has headed off for college, or you are ready to stop being the landing spot for family young and old coming to roost. Downsizing can be very cathartic as you rid yourself of space and things you no longer use or need... and it can also result in perks such as lower costs, less maintenance, not as much cleaning, etc. If you move from a house to a townhouse or condo you can even say goodbye to your snowblower and lawnmower!
4. Interest rates are still low
No one expected interest rates to stay low this long, but they will inevitably rise again. With continued improvements in the economy, this could be the year when they truly do rise. Many economists are predicting they will reach 5% in 2015... and with rising interest rates buying power for both your potential buyers and for you diminishes.
5. Sell because of you, not because of the market
Don't chase the market either way. Your home is where you live, not a commodity to be traded on the whim of the market. Sell for a specific reason... job change, family change (marriage, divorce, children, parents), life change, health issues, etc. If the market is low you will both sell and buy low... and vice versa if the market is high... it's a wash. Come to terms with the current market and sell for a fair price... and buy for a price you can afford, now and in your future.
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Originally posted in HomesMSPreal estateblog.com
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