According to the National Association of Realtors, a typical homeowner stays in a house for about 10 years. If you think that should shockingly short or way too long, the fact is people have numerous reasons for selling their homes. Still, there are some common threads that lead people to call it quits on their homes and move on to the next one. Let’s take a look at some telltale signs it’s time to start packing your bags.
You Know The Seller’s Market is Booming and You Want In
One of the more obvious reasons is that you are eager to make a profit on your property. You need to gauge the key indicators of a strong market. A few signals include: The price per square foot in your area is increasing, the amount of time properties stay on the market is decreasing, and you’ve noticed an uptick in brokerage activity in your neighborhood. If you live in an especially hot neighborhood, you might even get a letter or a knock on the door from a listing agent who wants to help you get in on the action.
Because Your Neighbors Just Got ______ For Their House
Check online listings in your neighborhood, and pay attention to the “recently sold” flyers in your mailbox to keep track of what comparable homes in your area are going for. If other homes on your street with the same bedroom/ bathroom count as you are selling for a price that you’d be more than satisfied with, it might be time to move on.
You’re Sick of Feeling Financially Stressed
Not everyone sells in order to pad their bank account. Some homeowners underestimated their ongoing housing costs and simply want to ease their financial burden. If your property taxes or mortgage payments have become unmanageable, the best recourse may be to find another home that’s more affordable. To breathe easy, your monthly housing costs shouldn’t exceed 28% of your gross monthly income.
You’ve Grown But Your Home Hasn’t
The starter home you moved into when you were expecting your first child isn’t necessarily the house you need now that you have three preteens and a dog. It’s bittersweet to give up the memories you’ve made in your home, but if your living quarters are causing you stress rather than comfort, take the leap and put it on the market.
You’re Over “High Maintenance”
The average homeowner shells out $2,000 a year for maintenance services. Not repairs, mind you, but scheduled services such as landscaping, septic service, private trash, recycling, and housecleaning. If you are sick of watching these payments go down the drain you might be better off in a low-maintenance condo or new-build property.
You’ve Put At Least 5 Years Into The Relationship
Assuming that you have a mortgage, if you sell too soon you haven’t really built up any equity in the home beyond the down payment. In the beginning, your mortgage payments are almost completely interest payments.
In fact, unless the housing market is seriously booming, you might lose money when you sell. Selling isn’t free. You will have to pay to cover all the costs associated with hiring a broker, closing, and purchasing a new home. That’s why we recommend staying in your home for at least 5 years unless you have an urgent need to move. In addition to everything else, moving too quickly sends prospective buyers a bad message.
Buyers don’t feel good when it appears you are selling too soon. They often ask “What was wrong with the house? Why are you leaving so fast?” Buyers can dream up all kinds of negative scenarios when a seller hasn’t owned the home for a long time.
