A Top Realtor® With KELLER WILLIAMS Platinum Realty
A home means different things to different people and even changes as we proceed through this thing called life. Your current home may be a stepping stone to something bigger or smaller or in another location, or it may be the home you plan to live in forever.
With homes selling at record-high prices in the last few years, the thought of selling your house may have crossed your mind. According to the National Association of REALTORS® (NAR), "The median sale price for an existing home in June [2023] was $410,200, the second-highest recorded in the last 24 years." You hear these stories about bidding wars and buyers skipping inspections, and it may be hard to resist the urge to sell your home. The housing market is definitely something to consider when buying or selling a house, but that alone may not mean it's the right time for you to sell your home.
According to the NAR, most sellers lived in their home for ten years before selling, and "the most commonly cited reason for selling their home was the desire to move closer to friends and family (21%), moving due to retirement (11%), or the neighborhood has become less desirable (11%)." Notice "a robust sellers' market" isn't on that list?
Before you take that leap and list your home for sale, you need to look at the big picture – your current needs, your financial situation, and the current housing market - and determine if it is the right time to sell your home.
You've outgrown your current home.
As your family grows, your need for more space may also increase. If you find your family of five fighting over the use of one bathroom every morning, it may be time to consider buying a larger home. Or, you may have purchased a smaller house because that's all you could afford at the time, but now you're more financially secure and want something bigger.
Your current home Is too big for your needs.
As children grow up and move out, you may find your 5-bedroom house is more than you and your spouse need. Furthermore, you're spending money heating, cooling, and maintaining a big house, along with time cleaning space you don't use anymore. It may be time to move into a smaller home.
You no longer can or want to maintain your home.
Maybe finances are tighter, and maintaining your older or larger home is becoming a challenge. Perhaps you're getting to a point where you can't (or shouldn't) do some of the maintenance you used to do on your house. Or maybe you just want to spend time doing something other than maintenance on your home. A condo or a community that maintains the grounds and exterior of your home may be a better fit for your current needs.
Mortgage interest rates are low.
If you sell your home, you'll need another place to live. If you decide to purchase another home with a mortgage, a lower interest rate can save you a lot of money over time. For example, if you buy a $300,000 home with a 30-year mortgage at a 5% interest rate, the total cost of your loan will be approximately $579,767 in principal and interest. At an 8% interest rate, that same loan would be roughly $792,466.
It's a sellers' market.
This is pretty much where we started this conversation. We are currently still in a sellers' market, where the demand for homes is higher than the available inventory of homes. In a sellers' market, homes typically sell more quickly and at a higher price. It's typically better to sell during a sellers' market than during a buyers' market, but as we said before, this alone isn't always enough of a reason to sell your home.
You have equity in your home.
Freddie Mac explains, "Your home's equity is the difference between how much your home is worth and how much you owe on your mortgage." Most experts suggest that you have at least enough equity in your home to cover closing costs and the down payment on your new home. If you have less equity than that, it would probably be financially wise to wait to sell your home.
Your Finances are Healthy.
Selling your home, moving, buying a new home, or renting a home costs money, so you should be financially healthy before selling your home. Do you have enough liquid cash to cover repairs, moving expenses, down payments, security deposit, etc.? If you're buying another house, will your debt-to-income ratio allow you to get a mortgage at a decent interest rate?
If you've concluded that it's the right time to sell your home, Pete Heim can help! He's been serving Berks County buyers and sellers with pride for over 35 years and is consistently ranked among the best real estate agents in Berks County. Put his experience to work for you!
Contact him today at 610-745-3378 or 610-898-1441 or connect with him online.
Pete Heim is consistently ranked among the best real estate agents in Berks County. He's been serving Berks County buyers and sellers with pride for over 35 years. Put his experience to work for you!
