Selling your home is a huge decision that needs to be made after you have done your research. The last thing that you want to do is sell before your area undergoes a massive property value boom. At the same time, you do not want to sell as the housing market plunges in the local area. Even some of the most stable areas can see an unhealthy housing market for a variety of reasons. You might even be able to upgrade if moving to another city as a small home in California could translate to a much larger home in a state like Texas. The following are things to consider when you are thinking about listing your home for sale.
Rental Value of the Home
Owning a home in certain markets can provide monthly income at incredible levels. Renting out your current home could be an option if you have already paid off your mortgage. You likely have a nest egg that you can put towards a new home. The ideal situation is if your old home pays off your new home through rental income over time. Not all rental markets are healthy and a nightmare renter can do immense amounts of damage. Property management companies charge a small fee but can be worth not dealing with renters. This can be seen as truly passive income as you rarely will have to worry about the home.
Downsizing or Outgrowing Your Home
Couples that are retiring tend to downsize their home as their children have grown up and moved out. Saving extra money that can be put into dividend stocks or a money market account can provide income during retirement. Outgrowing the home is another issue though as you might not be able to upgrade your home in your current location. People moving to another state could upgrade their home for a far cheaper price. Areas outside of cities are becoming more popular as social distancing requirements and new remote work opportunities have led to mass exoduses of cities.
Home Improvements You Can Make
Moving can be extremely stressful and your new home might not feel like a fit. You could invest the money into your current home that you were saving for a down payment. Home improvements can improve the quality of life for everyone in the home. Something like a home gym can provide convenience and a unique touch that some buyers might love. Tile shower refinishing could make a bathroom look as good as new. Take time to look at the different possibilities for your current space and improve where you find it necessary. Certain improvements like solar panels or energy efficient windows will actually pay for themselves over time in savings.
Selling your home should be done carefully and you should set a price you will not go under. Getting offers over your asking price is a blessing that can just add to the return on investment in the home.