One of the most challenging aspects of owning a home is trying to figure out when it should be sold. Most people buy more than one home in their life, and it makes sense as more money starts rolling in.
Selling at the right time can make a huge difference financially, so we asked Jacques Poujade, the Managing Partner of LendPlus to put together a guide on finding that perfect time. He has been involved in the real estate industry for decades and has seen some good and bad deals bite homeowners in the past. Here are his top five signs on when to sell a home.
The home is too small for a growing family, or too big for an older family
Sometimes, life happens, and homeowners don’t have much of a choice on when to sell. Buying a house for a family of two or three is vastly different than shopping for a home for five or more people. Couples who have children must find a way to give them all the proper amount of space so that they can grow and enjoy life.
Years later, a family with older children may find that it’s time to downsize because the number of people in the house decreased. It makes no sense to sit in a huge home if only two people are using it.
Regardless of the situation, the amount of people living in a home at any one time plays a major role. When it’s time to move on, it’s time. That will often take precedence over any other real estate issue. If it all boils down to buying a new home, here are 5 ways to win a bidding war from Jacques Poujade.
Too much commuting
A person’s daily commute can start to wear on not only an individual, but the family waiting at home. If a home is not located at least somewhat close to work, it might be a perfectly smart reason to move.
Not only does a long commute eat up time, but it is costly as well. Some people spend an hour or two of their pay just to get to and from work. That type of money adds up, and it’s the main reason why so many people can’t take it after a while.
Home equity has built up nicely
Having home equity allows a person to start shopping for other homes without much fear. There is no shame in just wanting an upgrade and striking when the iron is hot. If it’s a good time to sell and make a purchase, don’t hesitate.
There is significant interest in your current home
Some homes are so desired that there are people constantly asking about a potential deal. It makes sense to at least listen to offers, because it could be a deal that can’t be refused.
Also, pay attention to the surrounding market. If other people in the neighborhood are selling for a high price, it might be worth looking into. If the area is in high demand, it just makes sense to see if it will potentially sell for a high price.