There may come a time when you find yourself wondering if you should sell your home and relocate. There are key indicators that will help you make a decision, but you can also consult experienced professionals in real estate in Melbourne. Their guidance will prove beneficial, making it easier to know your next best move. What other signs should you look out for?
Positive Equity
Home equity is measured by the difference between a property’s financial worth and the remaining mortgage to pay. Equity building can be done in several ways:
- Your home’s value has increased over time, and you have made additional improvements that contribute to its overall worth.
- You maintained a good credit score by never missing a mortgage payment over the last five to 10 years.
Have your home professionally appraised to know how much equity you have. Don’t sell if the amount does not exceed your mortgage.
Market Cycle and Trends
While there are strategies to sell a home fast in any market, it helps that the current real estate market is in your favour.
- The property market fluctuates between the seller and buyer markets, and it’s important that the timing is right when you sell.
- You’ll know it’s a seller’s market if the demand is higher than the supply, with more buyers and sellers in the market. Under these conditions, you can price a property as much as possible and close a deal faster.
- In a seller’s market, multiple offers come to you and not the other way around, giving you an opportunity to sell above asking price.
- A buyer’s market moves the opposite way, with more properties listed on the market for longer. It’s definitely not the most favourable time to sell your home.
- In some cases, the conditions of the local real estate market can serve as your guide in making the right decision. The sale prices in your neighbourhood, for example, are trending upward, and many of your neighbours are selling their properties for a good price.
- Interest rates are low, and fewer homes are listed on the market. These translate to more buyers and less competition.
Readiness to Sell
There are instances where your personal situation can heavily influence your decision to sell, even when the market conditions and timing aren’t right.
- You’ve calculated everything and concluded that you are financially ready to relocate. Your home has enough equity, and you have the funds to make a sizable down payment and pay for the moving costs.
- Changes in your life, whether upsizing or downsizing your home, are telling you not to wait for the market to turn in your favour.
- You’ve completed repairs or renovations intended to attract more buyers and increase your property value.
When upsizing, it’s important to consider the cost of buying a bigger home and whether market conditions are favourable. Buying a huge property in a hot market doesn’t make financial sense.
Other Conditions to Consider
- Your current location and neighbourhood have become less desirable.
- Your current home is in need of repairs or upgrades that may be more expensive than if you were to buy or move to a new home.
- You’re looking for a change of environment, pace, and lifestyle.
- You need the sales proceeds to help improve your financial situation.
Knowing these signs will tell you when to sell your home or wait it out. Once you’ve made a decision, contact Marshall White to help smooth out the selling process and ensure a more profitable deal.
