You know when you’re ready for a new home. However, before you pull the trigger on your current house, you want to be confident that you will get a high return on investment and be secure in the bigger picture. Sky Equities, LLC is here to give you four signs of when it’s finally time to make that big move.
You Don’t Need Any Big Repairs or Remodeling
Upgrading your bathroom might make you feel better when potential buyers are touring through your home; but when it comes to selling your house, don’t worry about the small stuff. In a situation like that, you will most likely end up putting more money into the improvements than what you would get out of them. The critical thing to remember is that your house doesn’t need significant work done to reach potential buyers. The only thing you should do is check with your real estate agent to make sure you don’t have any severe renovations that would significantly increase your house’s value. If everything checks out, then your home is ready to hit the market.
You Have Positive Equity in Your House
Equity is the difference between what your home is worth and what you owe on it. For example, if your house is worth $100,000 and you only owe $50,000 to pay it off, then that means you have positive equity of $50,000. Ideally, you always want enough equity to cover your closing costs, as well as, put some money down for your next house. At the very least, you need to have enough equity to handle the current balance of your mortgage, that way you’re able to avoid paying out of pocket. Even if you have a small percentage of positivity equity, that’s a good sign to let you know you’re ready to sell.
You’re in a Strong Market
When you have been living somewhere for a couple of years, there’s a good chance you have some general knowledge about the housing prices in your area. With that said, you should always look for trends to make sure you can cash out on top. While you’re looking into selling, take notice of the number of days homes have been on the market. Has that number been decreasing? Also, has the square footage of homes in your area been rising? If the answer is yes to both of those questions, then those are sure signs you’re in a good market. Furthermore, if you’re satisfied with the price similar homes are selling for, the time might be right for you to put it on the market.
You Can Smoothly Transition to Your New Home
Buying your new home at the same time as selling your old one is always a tricky process. If you end up buying a house before you sell your old one, then you could end up paying for two mortgages at once. However, if you sell your house without having another house already locked down, then you might have to stay somewhere else temporarily until you find a new home. It’s essential to have a game plan in place that won’t jeopardize your financial future or leave you without a place to stay. If your resources are in place for a smooth transition to your next house, then the timing is perfect for you to make your big move.