You have equity
From a financial standpoint, the most important box to check off on the "ready-to-sell" list is equity. Over the past several years, home values have been on the rise, meaning many homeowners are building tremendous equity. And for some, your home might be worth more than you owe on it.
How do you know if you have equity? The equation is simple, really.
Market Value – Mortgage Balance = Home Equity
Depending on your plans after selling, you should aim to have enough equity to pay off your current mortgage as well as cover a 20% down payment on your next home. Anything on top of that is a bonus that can be used to cover things like closing costs, moving expenses, or more dollars towards your down payment.
You've had a shift in lifestyle
A lifestyle change could mean many things, so it's important to have a home that appropriately fits your way of life! Maybe you're going to be working from home for a much-extended period due to COVID-19, and you need more space. Or perhaps, your kids have moved out, and you have empty rooms and a big yard that doesn't get much use.
Regardless of the stage, you find yourself in; your life might be very different from when you bought your home. For this reason, it may be time to reassess. Be honest with yourself, and ask: Is my home serving my needs? If not, it just might be time to sell!
You're emotionally ready to sell
An overlooked part of the home selling process is the emotional toll it can take on a homeowner. No matter how long we've lived there, there's always a strong emotional tie with the place we home. And, if you have children, this process can be just as difficult.
It's important to evaluate you and your family's emotional state before making any major decisions. It's never easy but trust your instincts if it feels like the right thing to do.
You've planned for what's next
There are many intricacies in the transition from one home to the next. Be sure to have a solid game plan for what happens once you sell to avoid any surprises. Ask yourself these questions to help formulate an idea of what comes next:
- Where am I moving to?
- What will I be moving into?
- Do I need to sell to buy?
- Do I want to find my next home before listing my current home?
Bonus: You have a real estate agent
If the signs are pointing you in the direction of listing your property, it’s time to get your home on the market!
Consulting with a real estate expert will help you confirm your thought process and even provide you with some answers that you might have been missing. It’s only beneficial to you and the sale of your property, to partner with an expert who will give you honest advice and stand by your side through closing.
An agent does more than schedule showings on your property. They bring confidence and expertise to the table and handle numerous duties including:
- Setting the right price for your home
- Advising negotiation strategies
- Handling all of the required paperwork and legal documentation (and there’s a lot of it!)
- Marketing your home so it receives the exposure it deserves
- Giving you advice on necessary updates that will add value to your property
Don't rush the home selling process! Make sure you're in a position to get the most money for your home, and set yourself up for success, no matter your next steps! Talk to a Century 21 professional today to help you get started on your journey.