Should I Wait To Sell My Home Until The Market Improves?
July 21, 2011
This is a question often heard from homeowners who currently own, but who are contemplating a move. There are several different angles to look at when making this decision. The truth of the matter is there is no cut and dried answer for this question. Each potential home shopper, and homeowner has a different set of circumstances. First ask yourself a series of questions: - Why do you want to sell your home? - What is your motivation? - What will you achieve by selling your home? - Is your home valued at less than you owe to the bank? - If so do you have cash you can bring to the table? - What are the liabilities of holding on to your current home? (i.e. taxes, repairs, a continued decrease in the value of your neighborhood) - What is your emotional commitment to your current home? After all there is a reason you are contemplating selling, so define those reasons why. Then weigh all these questions and reasons and look at both your financial and your emotional health when deciding to sell now or wait. It may sound silly to say dive into your emotions, but by looking at the long-term effect on your emotional state by staying in a home that no longer fits your needs, it will help you come to terms with how you want to be living for the next several years. Many people make the mistake of thinking that if they wait they will get the best price for their home. But there are so many factors that contribute to that "price." First off, as the market gets stronger so will the prices on homes you wish to purchase once you sell your own home. As you wait for prices to increase you run the risk of interest rates increasing which means that you will afford less and less house for the money you have to spend. And finally if you wait, how long do you wait? We never have the luxury of knowing the optimum time to sell, that's where the emotional health of the situation comes in. Are you constantly unhappy as you fight for cabinet space in an inadequately small kitchen? Do you find yourself cursing your master bath, closet or bedroom over and over again for it's lack of ability to fit your needs? Are the kids outgrowing the space your current home has to offer? Do you find yourself wishing over and over that you were in a different area due to long commutes, better schools, newer neighborhoods or a slew of other reasons that started you looking for a new home in the first place? Then on an emotional level it may be time to make the decision to sell now and find a home that better fits your needs and those of your family. Image source: Â©PhotoXpress.com