Selling your home for top dollar may sound appealing, but it’s wise to keep your current personal situation in mind. Selling is not always right for everyone at every time.
Some things to consider:
- Buying a new home in your area may be too expensive due to inflation. If you’ve lived in the same house for several years, chances are that property values have gone up. While you may be able to sell your home for more than you paid for it in the first place, bear in mind that other homes in similar locations have also appreciated in value, and you may be priced out of a comparable property due to inflation.
- Mortgage rates may have changed, making it harder to afford a home purchase. Over the last year (2020–2021), mortgage rates have been very low, and mortgage rates may have been similarly low when you bought your current home. Given the nature of the market, mortgage rates fluctuate, and will probably rise again in the future. If you are considering selling, make sure to research up-to-date mortgage rates to be sure you can afford to buy at this time.
- A new or different home might cost more to maintain than your current home. If you’ve outgrown your current home and need more space, remember that bigger homes = bigger projects. If you’re moving into or out of an HOA, maintenance costs could also increase. Do your research!
- The state of the housing market may not be conducive to buying. This may sound counterintuitive, but in an extreme sellers market, it can be risky to sell your home. That’s because you may have trouble finding another one. If you have a home to sell and don’t plan to also buy, you’ll welcome a competitive market where multiple offers and offers well over asking price are the norm. But remember—unless you are planning to rent, live in your RV, or camp out in your mom’s backyard—once you sell your house, you become a buyer, and buying a home is very difficult at the moment (spring 2021).
A real estate agent can sit down with you and go over your personal timeline and the financial picture of selling your home so you can make informed decisions based on realistic expectations. If you look at your situation and realize selling is not the best choice for you, fall in love with your home again instead! Your agent can suggest many small (or large) upgrades to refresh your home and make it seem like a brand new space.
Your listing agent should be your strongest advocate throughout the home selling process, and it’s never too early to speak with one. Meet with several agents and interview them to make sure you’re on the same page. If you bought your home recently, you may want to reach out to your buyer’s agent for recommendations on good listing agents to speak to.
If you’re considering whether or not to sell your home, get in touch with a real estate agent to talk through your needs and options. Nesters are always happy to help!