My husband and I always had the dream of owning our own home.
For us, that was the epitome of the American Dream.
But living in one of the most expensive housing markets in the nation–would it even ever be possible?
We felt we did everything right.
And we bought a home–a two-bedroom, 1250 sq.ft. house for over half a million dollars.
That’s the reality of the housing market we live in.
Now here we are, less than two years later, with our infant, thinking of expanding our family even further, and wondering how we’ll fit in this house for another year.
But we can’t afford more house. Our mortgage is already at the maximum that I’m comfortable with, and housing prices have only increased since we bought our own home.
What do we do? How do we decide when is the right time to sell our home?
You’re Positive on Your Equity
When the housing market crashed, a lot of people had two options: stay put in a negative equity house, or short sell. A lot of people chose the short sale and took a really big hit on their credit.
The belief was that housing prices would just continue to climb and that people could always refinance their loans. But what goes up, must come down.
The lesson being: if you have positive equity on your home, you need to decide when the right time to sell for you is. You can never predict for certain when the housing market will stabilize or go down, so it’s important that you don’t hold on forever just to get the most if you’re planning on selling your home.
When you have positive equity in your home, you can pretty much use other factors to decide when to sell your home.Have you been thinking of selling your home? Here's how to make the decision Click To Tweet
Your Home Isn’t Working for You Anymore
When my husband and I first moved in, we had every intention of staying long-term. Due to the small size of the house and the relatively low mortgage (in comparison to other larger houses), our plan was to renovate and build a third bedroom.
However, after several relatively low-budget projects found unforeseen issues, such as asbestos, which tripled the amount of one project, I’ve been hesitant to take on any other housing projects, and a major renovation is completely out of the question.
The house no longer works for us long-term. We need to move. If you outgrow your house, that’s a good reason to decide that it’s time to sell your home.
You Have the Money
Selling and buying a home isn’t just packing up and moving. There’s a lot of money involved, in addition to the purchasing and selling part. You have to take into consideration moving costs, financing costs, closing costs, realtor fees, taxes… it costs money to move, and it’s not just about paying the movers!
Consider if you have the extra finances necessary to make the move, and whether you’re willing to deduct from the profit of the sale in order to make it happen.
Have you ever had to make the decision to sell your home? What did you decide to do, and how did you arrive at that decision?