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Signs Now’s the Right Time to Sell Your Home
Not sure when to sell
your house? If you’ve been on the fence, we’ve got good news: It’s a great
market for sellers! Limited inventory continues to drive home prices up, and
the latest data from the National Association of Realtors shows that 46%
of recently sold properties spent less than a month on the market.
Of course, the
decision of when to sell your home isn’t solely based on market conditions. You
have to take your personal situation into account—and that’s where expert
advice comes in handy.
We asked Linda Domis,
a Los Angeles-area real estate Endorsed Local Provider (ELP) with 38 years of
experience, to share her advice.
“Now is a great time
to sell,” she says. “Longer days during daylight saving time mean more hours
for buyers to look at property. With less stress, buyers can think
about a move more comfortably.”
Here are a few other
things to keep in mind before planting a For Sale sign in your yard.
You’re Out of Debt
With Cash in the Bank
If you didn’t have all
your financial ducks in a row your first time around the home-buying block, you
probably learned a few things the hard way. Like the fact that Murphy can smell
broke from miles away. If it can go wrong, it will! Put those lessons to good
use and be a money-smart home buyer the next go-round!
Start by taking a hard
look at your finances. If you’ve paid off all your nonmortgage debt and have
three to six months of expenses in your emergency fund, that’s a good sign
you’re financially mature enough to purchase a home again.
You’ve Got Equity on
Your Side
When the housing
bubble burst, home values plummeted, sending many mortgages underwater.
Thankfully, the tide has turned: According to CoreLogic, 89% of homes with a
mortgage ended 2014 with positive equity. If you’re not sure where your equity
stands, ask an experienced real estate agent to
run a free comparative market analysis (CMA) to determine an approximate value
for your home.
Linda says it’s worth
the sale “if your home has recovered enough value to provide at least 20%
equity for your next purchase.” Why is 20% the magic number? Because putting
20% or more down on a home keeps private mortgage insurance (PMI) at bay.That
could save you hundreds of dollars each year!
Your Home No Longer
Fits Your Lifestyle
Another factor to
consider is how well your home meets your everyday needs. Perhaps you could use
another bedroom (or even two) to accommodate your growing family. Or maybe your
kids have all moved out and you’re ready to downsize.
“Empty nesters can
really benefit from selling now while rates are low,” Linda says. “It’s very
freeing to sell a large home, pay cash for a smaller one, and invest the rest
in your retirement.”
Whether you’re sizing
up or down, make sure your mortgage fits your budget. Dave recommends keeping
your monthly payment to 25% or less of your take-home pay on a 15-year
fixed-rate mortgage.
You Can Actually
Afford the Move
Don’t get so carried
away by the excitement of your next home that you forget to account for the
cost of leaving your current one. Hiring professional movers? Save up cash to
cover the cost of packing up and hauling your stuff away.
You should also invest
a little to get your current place ready for prime time. Linda recommends
focusing your home-improvement dollars on these areas:
- Paint: “Paint
is the number-one investment when upgrading,” she says. “Buyers
love the look—and smell—of fresh paint.”
- Curb appeal: You
only get one chance to make a first impression. Linda suggests a
three-pronged approach: “Plant flowers, trim shrubs, and paint the trim.”
- Kitchen and bath: “You don’t need expensive appliances or countertops,
but new faucets and fixtures go a long way,” she says.
Want a bonus tip that
doesn’t cost a dime? Clear out the clutter. “Neat closets and tidy shelves make
your home look larger!” Linda added.
Make the Right Choice
for You
There’s no single
formula for determining when to sell your house. Partner with a pro you can
trust to provide honest advice so you can do what’s best for you and your
budget. A good agent puts service before sales—but knows how to get things done
when it’s time to sell.
Looking for a pro to
guide you in the right direction? Give
me a call at 281-652-1212 to discuss your future plans
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