Homeowners who decide to sell or not to sell their homes must first decide whether it’s the right decision, and then exactly when to do it. There are four major factors that come into play: the state of the market, employment status, family, and changes in lifestyle. By taking a full inventory of all these factors before you decide to put your home on the market, you can make your decision with the confidence that your hard work, money, and time aren’t invested in vain.
To sell or not to sell State of the Market
The real estate market constantly fluctuates between a “buyer’s” and “seller’s” market depending on the ratio of homes to buyers. In a buyer’s market, homes outnumber buyers, driving down prices by the forces of supply and demand. The reverse is true of a seller’s market, where relatively few homes means higher demand and higher prices. For sellers intent on finding another home, either out of obligation or just for a change of scenery, market fluctuations aren’t all that important. If it’s a buyer’s market and a seller has to take a loss, the fact that it’s a buyer’s market means they’ll likely recoup their loss when they purchase their next home.
However, if you’re an investor selling your home primarily for profit, paying attention to the fluctuations of the market is of paramount importance. A good rule of thumb for investors: buy when everyone is selling, and sell when everyone is buying.
To sell or not to sell Employment Status
Obviously, if you take a job in another part of the state, country, or world, this change in employment status might leave you with no choice but to move. But just because you’re forced to sell your home doesn’t mean you can’t gain from it. Markets fluctuate at the state-to-state, and even city-to-city, level. There’s always the possibility that the market wherever your new job places you will favor buyers when you get there.
If you aren’t being forced to move, but are trying to enhance your standard of living by moving up to a more expensive home, you’ll not only want to have an awareness of the local markets where you’re shopping, but more importantly a steady job. This is where employment status is most important. A buyer who takes on a more expensive mortgage then finds themselves laid off, or injured, can face a real nightmare scenario. So before you decide to upgrade your standard of living, make sure your employment status will support it.
To sell or not to sell Family
One of the biggest factors that drives homeowners to sell is the addition of a new member to the family. Growing families need more room, and safer neighborhoods with better schools. Newborns in particular require a lot of space, and because it’s difficult to move after they’re born, many couples who find themselves pregnant are forced into a three-trimester deadline to find a bigger home.
But just as sellers need to make sure they have job security before they upgrade to a more expensive house, expecting parents will want to plan ahead and make sure their post-natal budgets will support the move.
To sell or not to sell Changes in Lifestyle
The most common lifestyle change motivating home-sellers is retirement. Retirees often choose to downsize to cut back on property upkeep and expenses, lessening the burden on their aging bodies and dwindling finances. As opposed to having a baby on the way, or taking a job that requires relocation, retiring usually doesn’t demand a strict selling deadline. In this case, sellers have the advantage of being able to look ahead and judge the state of the market in order to get the best price on their home when they sell.
In some instances, the choice to sell your home is made for you. In others, the decision is in your hands. But in either case, it’s a good idea to be cognizant of the market and of your finances in order to ensure that when you move, you make the right move.
We at Authentic Real Estate Team pride ourselves on our commitment to not just meeting the standards of great listing agents, but surpassing them. We have the experience, communicability, marketing savvy, creativity, and negotiation skills you expect, and so much more. So, if you’re looking for a real estate agency to sell your home, look no further than the Authentic Real Estate Team.