Studies and surveys held lately indicated that property owners residing within their own homes tend to shift residences once every ten years. This may sound like a super long time to you but tends to feel much shorter to others. Mate, the fact of the matter is that the decision to move out of your present home is personal. Depending on your situation, your financial circumstances and the market dynamics, we are sure you will make a well-informed choice that will be best for your household’s needs. One cannot deny that evaluating such a choice is an exciting time – full of possibilities! You can either choose to upgrade your home or sell for a profit and live in a smaller property. Here are some tips to help you get started in making what we hope is the right decision for you and your family:
- You want to reap benefits as the seller
Chances are that your home has leaped in monetary value since you first purchased it. The real estate sector is on fire and you wish to benefit from your investment gains whilst you still can. It seems the right time to sell, does it not? You will do your homework and be well aware that the real estate industry is constantly evolving. Hence, you want to ascertain that the time to sell is the time in your favour. Here is how you can appraise whether this is the case or not:
- The grapevine is telling you that there are bidding wars taking place for properties similar to yours
- The price per square foot is rising within your neighbourhood
- Your neighbours are selling their homes and enjoying profits
- Properties are being snatched up from the market quickly
Sure, you can study and analyse these signs. Or you could be a bit more efficient and save yourself a lot of research trouble by simply conversing with a real estate broker or agent. Try to find a reliable one through your trusted social circle of friends and family. They will be more than happy to provide you with some information and guidance on the happenings of your vicinity and what the right choice may entail. If you are trying to sell your home whilst hunting for your next dream property, do keep in mind that there will be a time lag involved. You will want to make sure that you have enough cash to buy your new home before signing the contract.
- You have lived in your current home for more five years or more
The general agreement in the real estate sphere is that one should abide within their home for a minimum of five years if they wish to sell without losing any value but to gain instead. As you are already a homeowner, you are well aware of the costs involved in getting or selling a new place.
If you decide to go ahead and list your property on the market, make sure you take into account that you will be handing out five to six percent of the sale price as commission to a real estate agent. Yes, you could try to sell independently but case studies have reflected higher sale prices when real estate brokers are involved in the transaction between a buyer and seller.
- Things around your home are deteriorating
Is your current property draining almost thirty percent of your present gross monthly income? Is that boiler acting up and you think its time to buy a new one? Sure, you could just invest a few thousand pounds into getting a new boiler, protect it with boiler insurance and do your best to maintain it. However, what if the problem lies deeper than that? What if there are structural issues with the property itself? You could get it fixed and be better off buying a whole new asset instead. You do not want to be spending more on the house than what your mortgage costs demand and fall into the clutches of additional household debt. Unless you manage to amplify your current income and meet those extra costs, you will feel super stressed, drained and possibly lose out on sleep.
- Your life has evolved since you bought your home
You have raised three children, sent them to college and are done with your responsibilities. Your current home is too large to maintain and too big for just you and your partner. Maybe it is time for a change that suits your present lifestyle more. No matter how much you love your home, such a time will probably arrive.
It could also be the complete opposite: you were previously single and are now married with a baby on the way. You want to move out of the 2 bed apartment you own in the city and get a bigger place in the suburbs with a backyard where you can install a sweet swing set and slide for your peanut. After all, location plays a huge role in the choice you make to buy a property or not. Moving houses can present a lot of opportunities. You could be closer to family, to friends, to better schooling and hospitals etc. Our advice? Make a complete list of the pros and cons of shifting houses so you can make the most optimal decision.
- Your neighbours are making profits on selling their homes
Ben next door just sold his house for a nice, fat profit! You are inspired to take similar steps. Why not? Strike whilst the iron is hot!
However, hold your horses. Is Ben’s property similar to yours? Is your home as well maintained and preserved as his? If not, then you may need some time to make some upgrades, so you can demand a similar sweet price. Are there more features, more bedrooms, more kitchen and living space? You see you need to consider all potential variables that led to that beautiful sale profit and see if you can replicate the situation with your current home. If yes, wonderful! If not, try to get the advice of a professional real estate broker to help you figure out what would be the best situation for you.
