We have been helping home sellers and buyers for many years and in that time we have heard a lot of different questions from clients. However, one of the most common questions we get is this: When it is time to sell my home?
The answer is not as simple as giving you a date. You can always contact Berkshire Hathaway HomeServices at (310) 373-0021 to speak to a real estate professional who can give you specific advice about your unique situation. In the meantime, learn some of the most important questions to ask yourself to find out if it is time to sell your home.
How Much Equity Do I Have in My Home?
To figure this out, look at how much money you owe on your mortgage and subtract it from what your home is worth. For example, if your home is worth $750,000 and you owe $600,000 on your home, then you have $150,000 of equity in your home. Due to current markets, most homeowners have equity but if you do not, you could end up having to pay off the difference between what you owe and what your home is worth out of your own pocket. It may not be the best time to sell.
How Much Debt Do I Have?
In addition to the amount of money you owe on your mortgage, what other debt do you have? Do you have credit card debt, car payments, student loans, etc.? If so, lenders may not consider you a good loan risk. You cannot assume that just because you currently have a mortgage, lenders will automatically trust that you can handle a new mortgage.
Do I Have Enough for a Down Payment?
The standard amount to put down is 20%, though there are loans that require just 3%. The latest research shows that more than half of buyers put down at least 20% so if you want to be competitive, you will likely need to have at least this amount – plus enough cash to pay for an appraisal. If you have enough money then you are set – if you don’t, then you will need to sell your home before you can buy a new one.
Can I Afford a Move?
No matter what steps are taken to scrimp and save, moving is expensive. Homeowners considering selling their home so that they can pay less for a different home may end up not seeing any savings for many months after the costs of moving are factored in.
At Berkshire Hathaway HomeServices we are standing by to help you find the right home and to decide if now is the time to move. Just call us at (310) 373-0021 and let’s talk.