When is the Best Time To Sell Your Home?
There may come a time when the house you own, for whatever reason, is no longer suitable for you and your family. Perhaps the kids have grown up and moved away, so you don’t need as much space, or perhaps the family is still growing, so you need more room. Regardless of the reason, selling one’s house is no less involved than buying it was. It can be just as stressful, confusing, and daunting, if not more so. Fortunately, just as with buying a house, there are professionals available to help you through this process. One of the most important aspects to consider when selling your home, however, is when to sell.
Get Financially Stable
Financially, the best time to sell is when you’re debt free and have a little extra cash in the bank. You probably learned this when you bought your home in the first place, but if you don’t have all your finances in order, things can go very wrong, very quickly. A good rule of thumb for second-time home buyers is to have all your non-mortgage debt paid off and an emergency fund to cover three to six months of expenses. If you’ve got that covered, you’re financially ready to buy a second home.
Do You Have Equity in Your Home?
Second thing to consider is when equity is on your side. If you’re not sure about your current equity, get together with your real estate agent and ask them. Realtors can run a CMA, or comprehensive market analysis, to get an approximate value of your home. Ideally, you want your home value to cover 20% equity of your next home purchase. Putting a 20% or more down payment on a home keeps private mortgage insurance at bay, making 20% the magic number to look for.
Other factors will come into play, naturally, such as when your current home no longer fits the needs of your family or lifestyle. These are just some basics to give you a quick idea of when you should look at selling your home to see if you’re ready to do so.
If you are considering selling your home Contact AZ Property Partners Today!