With all of the unusual changes in the market over the past several years, you might be wondering how long you should stay in your home. While homeowners choose to sell for a myriad of various reasons, the average length of stay in a given residence is ten years. Perhaps you feel financially and emotionally tied to your home as most residents do, and you are struggling with goodbye.
The Aitken Home Team presents six signs that it might be time to move on:
Seller’s Market
Money changes things and, as with every other American homeowner, you don’t mind turning a comfortable profit. Here’s the trick: consult your experienced real estate agent regarding the price per square foot that you can expect to get for your home. Has the price gone up? Also, investigate the average day’s listings in your area tend to stay on the market within the past six months. If the average DOM (days on market) is decreasing and you have noticed more properties for sale in your neighborhood, it might be time to make your move.
Your Neighbors Made a Killing
Take a look at the properties which have recently sold in your neck of the woods. Make sure you are particularly zeroing in on homes with similar floor plans as yours. If such homes are selling quickly at impressive prices, it might be time to make your move.
Stressed Piggy Bank
Perhaps you’ve considered what it costs each month to continue to live in your home and you are tired of barely making ends meet. Your property taxes have increased and you are finding it increasingly difficult to make the mortgage payment each month. Your monthly expenses are exceeding the recommended budgeted amount of 28% of your gross income and it’s becoming harder to sleep at night. Perhaps you should consider finding a less expensive home to purchase. Consult your real estate agent about a suitable price tag for your current home as it might be time to make your move.
Related: “What’s in Your Wallet?”
You’ve Outgrown Your Humble Abode
Your home seemed rather large seven years ago when you first moved in….and you were single….and you didn’t have two dogs and four children. Cramped living space can be stressful for all residents and, while the emotional ties are strong and the memories dear, oxygen is more important. It might be time to make your move.
Maintenance
If you are sick and tired of spending every weekend on maintenance projects and draining your bank account on watering your grass rather than island vacations, consider hunting for a lower-cost pad in which to reside. There are many, many options for low maintenance, cost-effective living and it might be time to make your move.
Equity
If you have lived in your home for less than five years, chances are that you haven’t even acquired any equity as the majority of your mortgage payments have gone to cover the interest. You could lose money if you move too soon and spend even more cash on brokerage fees, closing costs, and the purchase of a new house. Remember: while you can get a smart, experienced realtor who is crafty at working good deals, selling is never free. You get what you pay for. No matter how cramped, how far the work commute, and how high the taxes are, make every effort to stay in your home for at least five years to make things financially worth your while. If you have achieved residency veteran status then it might be time to make your move.
Related: “6 Tips for Boosting Equity”
Regardless of your situation, it is important to think long and hard about the decision to sell. Don’t be impulsive and do your research. Make sure that you know where you’d like to live in the event that you do list your property and consider whether home prices in your prospective new zip code would be likely to plummet in the next year or two. Most importantly, work closely with an experienced real estate agent who has your back and will be honest with you even when they do not stand to benefit financially. Now might not be the time to sell, but things could change quickly and soon!