Selling your home is never a simple process — but sometimes, it can be necessary.
If you’ve found yourself in financial straits, if you’re unhappy with your living situation or neighborhood, and if a job change is in the offing—selling your house might be the best option. But, before you begin the process of selling your home, there are some things that you need to know.
Here’s a list of 9 things to consider before putting your house on the market:
Your Family is Growing (Or Shrinking)
If you’re about to have your first child, or adding a second (or third) member to the family can be stressful. Parents often sell their houses when older kids move out of their homes. You can use the sale of your house to purchase a larger, more suitable home for you and your growing family or downsize when your children leave home—and put the money from that sale toward your retirement.
You’re Not Happy With Your Location
Is the traffic getting worse in your area? Have road closures and construction made it difficult to get around lately? If so, selling your house might be a good option. Spend time researching communities in your area, and explore each with the family. Consider school locations, commutes to work—and other factors, such as highway access, before you buy property anywhere.
You’re Changing Jobs
If you’re planning to leave your job and need a new one, selling your house may be the best option for getting the funds you’ll need.
- You’ve lost your job and can no longer afford to live where you are.
- You were transferred by your employer or need to change careers, with the new office far from home.
- Your income has dropped significantly—or stopped altogether—and you cannot cover housing costs with your remaining funds.
- Your employer has moved offices, and commuting from /to home is no longer feasible.
You’re Nearing Retirement
For many people, selling their homes is a wise move once they reach retirement age. Doing so can reap the benefits of having extra cash for your future or build up savings that might otherwise be unavailable to you. Whether you choose a pension or an annuity, it can help ensure that you cover living expenses in the future.
Selling your home can make traveling more accessible because you no longer have the financial or physical stress of maintaining a property. This change should reduce your physical stress levels if you downsize to a smaller home.
For a small condo, mowing the lawn may not be necessary, or for a first-floor apartment could eliminate the need to climb stairs.
You’re Tired of the Upkeep
Additionally, you may want to sell your home if you’re tired of keeping up with its maintenance and repair needs. It could be due to aging, a physical limitation, or a disability, or you may travel too much for home ownership. Despite their attachment to where they currently live, some older people may need to sell their homes and move into a less-demanding one.
You Need More Cash Flow
One of the best things about owning your own home is that you build equity — and when times get tough, you can use this to help. If you’ve lost your job and have no way to pay the bills, are facing sky-high medical expenses, or an unexpected expense—sell your home. Use the proceeds from selling it to keep yourself afloat until you land back on your feet.
The Neighborhood is Going Downhill
Neighborhood changes are inevitable: Neighbors come and go, businesses open and close, and schools change their quality. Maybe crime rates have increased, or you’re just not fitting in with new residents—if this is the case for you, it might be time to sell your home. If you’re not happy with the neighborhood anymore, take action. You don’t want to be in a place that doesn’t feel like home.
You Want a Brand New, Upgraded Property
Are you tired of your home’s outdated components and design? Want a property with an open floor plan or the latest innovative home technology? Want to construct your dream house from scratch? Then buy a new construction home. You can customize your home to suit your tastes if you act quickly. You’ll also enjoy the comfort of knowing that you built a home with the latest construction techniques and materials. It can save you utility bills and prevent expensive repairs down the line.
The Market is Hot
Finally, you might consider selling if the local real estate market is hot (and homes sell often and quickly). When demand is high? Higher home prices follow. That’s an opportunity to increase your investment return and bring in some profits. For example, use them to boost retirement savings or buy a larger move-up property. It’s a win-win!
The Bottom Line
When life (or finances) requires selling your house, do not decide without considering all of the factors involved. Do not sell your house because you are facing financial hardship. Consider other options, such as getting a home equity loan or refinancing your mortgage at a lower rate.
Many home builders offer trade-in programs, which allow you to sell your existing house and build a new one simultaneously. You can sell your home by listing it with a realtor or try online services like Opendoor, Offerpad, and Zillow Offers. Do some research to find the option that best suits your family’s needs and timeline.
Do any of these reasons resonate for you? If so, now is the time to start preparing. Even if you don’t anticipate moving for several months, this is the best time to get the process started.