5 reasons it might be time to sell

Finding the right time to sell your home requires thought, patience and certainty. When so many factors come into play, it’s important to take the time and plan if selling your home is the right choice for you (both financially and emotionally). Here are a few reasons it might be time to make the change.

You’re ready for the change

Knowing the right time to sell is more than understanding your financial position and the market conditions. Most of the time, deciding if it’s the right time to sell starts with being ready to cut the cord and start fresh.

Selling your home is more than re-locating; it’s stressful, emotionally draining and something you need to prepare for. If you’re not ready to actively search for new properties, prepare the house for sale and welcome realtors and potential buyers into your home, then perhaps rethink putting yourself through it all. 

Approaching real estate agents, house cleaning and spending your weekends sifting through real estate magazines means that you’re getting serious about selling – especially if you’re considering some renovations to prepare for the sale. However, if you’re not ready to invest your time, perhaps give yourself some time to prepare. 

It’s time to down/upsize

Life moves on, and things change. Your family might be growing and are in need of more space or a more suitable location. On the other hand, you might be ready to downsize and find a property that better suits your needs. 

Understanding the needs to update your home to suit your needs is a big step. The kids might be growing up or moving out, and you may find more of a need for an apartment than a house. Whatever the reason, your home should reflect your needs, and if it’s not doing you any favours, then it might be time to reconsider whether staying put is really in your best interests. 

Your equity is in the right place 

If you’re emotionally ready to sell your home, the only other thing is to be financially prepared. One of the most telling factors of whether you can take the brunt of selling financially is having built positive equity. 

Having built positive equity comes from successfully paying off your current mortgage for a steady amount of time (approximately more than five years). Your equity is based on your home’s current market value and how much you owe on your home loan. The difference will be the amount of equity that you’ve built. For example, if your home’s current market value is $500,000, and you currently owe $300,000, you have $200,000 of equity. However, if you owe more than the property’s current worth, this means you have negative equity and are worse off than before. 

Selling your home will incur some costs, so having positive equity means that these costs can be covered. Your equity should be able to cover your deposit for your next home, as well as any moving and real estate fees as a result of the sale. 

You can afford it 

Knowing you’ve got some equity is one thing; however, having a cushion of savings is always recommended. When purchasing your new home, the bank will want to ensure that you’re in a good financial position to take on another loan. 

It’s always a good idea to have your own pocket of savings to lean on as well as your equity, this will save you from only relying on your equity to get you through your next purchase. 

Selling your home means cleaning fees, real estate fees, moving fees and a mountain of other expenses. Being financially ready to commit to selling means being prepared for the cost that comes with making a move. 

The right market conditions 

Understanding the market conditions can indicate if selling your property will be in your best interests. Historically, a strong buyer’s market (high demand) is an indicator that your home’s value could increase. If, on the other hand, there is more supply (a seller’s market), then this may negatively affect the value. 

However, don’t let this scare you off. If local houses in your area are selling, this could mean an increase in demand in your local area. You’ll also have an idea of comparable sales in the area. If you find surrounding properties are selling for a reasonable price, it might mean it’s a good time to jump on the bandwagon. 

Understanding the market conditions can work in your favour if you do your research. What kind of homes are selling? What demographic is buying? Is the area up and coming? How much have prices changed in the past few years? Why are people buying/selling? These questions will give you a good indication of whether you will benefit from selling your home. 

However, it’s important to remember that there is never truly the ‘perfect’ time to sell. The decision to sell your home should be informed by a number of factors outside the market performance. Although, knowing the real estate market certainly puts you ahead of the game. 

If you’re thinking of making the change, it’s important to understand your home’s current market value. This will give you a solid understanding of where your property sits within the current market. Seeking out an independent, professional property valuation will provide you with a foundation of what your property is worth and inform your decision to sell.