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How can you tell you’re ready to sell your home?

When you purchased your home, you were well aware you made a significant investment. Now, you might be thinking if it’s time to move on, sell your home, and start a new chapter of your life. How can you tell if you’re ready for this undertaking?

It depends. There are, however, six signs to watch out for. These might indicate it’s about time to sell your home.

  1. You’ve built enough equity on your house

    If making a significant profit is your priority, take a look at your equity. It signifies just how much of the home you actually own. To enjoy returns on your investment, you must have a positive equity, meaning your home is now worth more than what you owe.

    How does equity work and how do you build it? Two factors come into play. Your equity can increase as your home value rises and your debt decreases. For the former, the economy can affect local property values. Renovations and upgrades can also boost it. Meanwhile, making your monthly payments, paying extra, and choosing shorter mortgage terms can help you decrease your debt.

    With positive equity, you can pay off the rest of your mortgage and have enough left to make a 20 percent down payment for your new home. You might even be able to cover the closing and moving costs and still have money to spare.

    Read more about building your equity here.

  2. You can finance an upgrade

    Positive equity aside, it’s also a good time to sell if you are out of debt and with enough funds to purchase a new home that fits your current lifestyle.

    Sit down and take a look at your finances. Have you paid all of your outstanding balances from non-mortgage related debts? Do you have enough money in your savings account, enough to see you covered for the next three to six months?

    You will most likely get another mortgage to buy a new home, so request a credit report and examine yours closely. How’s your credit score? Did it improve? If not, what can you do to get a higher rating?

  3. You’ve outgrown the house

    Over the years, several things could’ve happened that made significant changes on your lifestyle. It could be that you and your family are due for an upgrade to meet the demands of a growing family. If you’re an empty nester, down-sizing might be on your mind.

    Just because you’ve outgrown the house doesn’t mean you can plan the home sale the next day. Just like when you purchased a home, visualize where you see yourself in the next five to ten years. If you have a growing family, what would you like to have in your new home? For empty nesters, do you want to stay in town, move somewhere else, or start exploring retirement options?

    By identifying your goals, you’ll be able to plan how to proceed with the home sale. Consider current circumstances as well. If you have school-age children, it might be best to sell your home during the latter part of the school year and move once it’s done.

  4. The current market conditions are ideal for selling

    It might be a good time to sell your home if the current market conditions are ripe for such an endeavor. To know if the market favors sellers, consult a real estate agent. Even if the real estate market isn’t a seller’s market, certain circumstances such as high property values and consistent demand for homes in the area can be beneficial to your home sale in case you pursue the venture.

  5. You’re emotionally ready

    It’s hard to quantify and explain what you’re feeling, but sometimes, you’ll just know when you’re ready to let go of your home. Some things might have happened that helped you reach this epiphany, or maybe you’re just ready for new horizons.

    How you feel about selling your home is one of the most important factors to consider. If you are still deeply attached to the property, you might have a hard time selling the house. It can even come to the point that the property is racking up days on average in the market because of your unwillingness to sell.

    If you are not 100 percent ready to sell your home, don’t force it even if the market conditions say you should.

People have different motivations behind selling their homes. Consider your own reasons carefully and, when you’re ready, get in touch with Stephen Haw and his team at skh8828(at)gmail(dotted)com or 310.503.9866. They’ll help you with the entire home selling process, from getting your home ready to sell to closing the deal.