Should I Sell My Home?
September 15, 2020
Should I sell my home in 2020? Does Covid have an impact on my ability to sell my home? Should you wait until 2021 to sell your house? How is the housing market right now? Is it a strong seller’s market right now?
Perhaps one of the most burning questions most home sellers have is exactly that! Now, I never recommend timing the market (it’s just not feasible). Further, many investors say that you make your money on investments when you buy — not when you sell. But I know that many homeowners are wondering: should I sell my home now?
Let’s look at that question. Today, we’ll provide you some great ways to figure out what the market is doing and find the best time to sell.
When should I sell my home?
Okay. I’m assuming you’ve already done your homework and figured out what “seller’s market” means. If you haven’t, go read that first.
In general, the rule is that you should buy in a buyer’s market and sell in a seller’s market. Makes sense, right?
Buy low and sell high — that’s the winning strategy for most investments.
There are other factors, though. Nothing is ever that straightforward, right?
When it comes to selling your home, the best time to sell is when it works best for you. That means when it makes the most financial sense. Let’s break that down.
Sell your home when the market is high
The more money you can get for your home when you sell it, the better.
It’s always a wise idea to run some numbers here. Talk with a financial professional about the tax implications capital gains might have.
Also keep in mind that getting a higher purchase price in an offer doesn’t necessarily mean getting a higher price at the closing table.
(Negotiations after inspections and appraisals are a real jerk.)
Sell when you will net the most
Run a net out (or have a real estate professional run one for you). Look at what you’re actually making from the sale.
This will look at potential purchase price and all your expected closing costs. The end of the net out will tell you the size of the check you can expect to receive at closing.
This is an important figure, and it’s not that easy to calculate if you don’t know what you’re doing.
Call your real estate professional!
Should I sell during Covid, or wait?
The answer here is that it really depends.
The pandemic is doing all sorts of weird things to housing markets all over the world. Demand is increasing, but builders aren’t building, so inventory is low.
This has created a strong seller’s market, but there are still limits on how much you can sell your home for.
Lenders are also inundated with applications right now due to historically low mortgage rates. This means buyers are having some trouble.
Additionally, there is the issue of health. Are you comfortable having strangers traipse around your property during a pandemic?
If you do choose to sell your home in 2020, I highly recommend working with an agent who focuses on using technology to minimize your exposure to Covid.
Don’t have time to read the rest of this post? That’s groovy! Watch our quick video about signs that it’s time to sell your home, and get on with your day!
How long should I wait to sell my home?
Here’s a good question!
A lot of people wonder, “Should I sell my home if I’ve only lived here for a few years?”
Well, it depends!
As a fun fact, the average homeowner moves approximately every seven to ten years.
Yeah, that 30-year fixed mortgage you signed up for when you bought? It was a cute idea, right?
The truth is, depending on the market and your personal financial situation, you may be fine selling even a few years after buying.
A lot of it depends on the closing costs you can expect to pay to sell. Some of it also depends on how well your home has appreciated since you bought it. Maybe you’ve done some improvements that will get you more money for your house. Or maybe the market’s just skyrocketed like crazy (like right now!).
Either way, a good real estate agent can sit down with you, tell you how much you can expect to sell your home for, and present you with a net out. From there, you can look at your outstanding mortgage balance and decide whether the time is right.
When your home no longer works for you
We don’t always change up our living situations because we’ve decided we’re ready to move on to the next adventure. Sometimes, we move because our homes simply don’t suit our needs anymore.
Maybe your mortgage payments are too high for you to comfortably make. Or perhaps you have changed jobs and your home is now too far of a commute. Many people upgrade when they have a new child on the way. And then switch to a smaller space once their children head off to college.
If your home no longer suits your needs, it may be time to move. Sometimes, this means making an emotional decision rather than a financial one. You should, of course, speak with a financial professional to see whether a change is practicable. But a lot of the time, moves like this will happen regardless of the market.
In this case, it is absolutely best to work with a real estate professional – like us! – who can walk you through the process. We can help make the transition as smooth as possible. Additionally, we can help minimize the fallout if the timing isn’t ideal for your sale.
Still can’t decide?
We’d, of course, love to help you while you consider the home selling process! Our full-service real estate agency works hard to help clients — both current and potential — every step of the way.
We would love nothing more than to talk you through our process, look at your situation, and help you make that crucial decision to sell.
The easiest way is to contact us directly! Of course, you are also always welcome to use our live chat to connect to an agent.
Not ready to talk? No problem! We’ve got lots of seller resources here on our blog you’re welcome to read over until you’re ready.
If you have more real estate questions you’d like to see us answer in our next post, make sure you leave a comment!