How many debates have you had with yourself and your partner about selling your home? You probably still have a mortgage on it, and you’ve lived there less than ten years. You like your place, but it needs work and repairs will be extremely expensive right now. You are not sure what to do and you are just going through the motions each day. The reality is that you are intrigued about selling because you can get double what you owe on the property.
Because of the equity you’ve built in your home as well as the increase in prices, you have the chance to sell your home and put hundreds of thousands of dollars in your bank account. Keep in mind, you are going to have that money all at once, not over several years or in installments. Wouldn’t that be a nice thing to have, especially with the cost of living going up so much?
Should You Sell?
The question still remains, should you sell? This is where a realtor can help you as they can go over your options based on your current situation based on location, home value, income, financial status as well as whether or not the property needs repairs to be ready for someone to live in it. All of these things can impact the decision and a realtor can help you to understand these things and come up with a realistic strategy for you.
Based on the criteria that most people are dealing with which would cause them to wonder if they should sell their home right now or not, the answer is probably. If your income is less than one hundred thousand a year and you can make over one hundred thousands in profit, you are literally going to be giving yourself the annual earnings of working more than one year. If it’s four times what you make in a year, you now have savings that puts you four times ahead of your annual costs, if you are usually living paycheck to paycheck.
The Big Question & A Different Answer
The big question and what’s keeping you from selling right now is where are you going to live once you sell? This is an important question and it influences the decision of whether you should sell or not. If you are paying $2,000 a month for your mortgage and in order to rent a home similar to what you have now would be over $4,000 a month, then selling your home would mean an added expense of over $24,000 a year because of the cost of rent. If you made $100,000 profit on the sale of your home and you were living paycheck to paycheck, theoretically you will use up that additional money in less than four years.
When you put the numbers together, the decision becomes easier to an extent. For some, that four years of financial assistance means they shouldn’t sell while for others, it means that they should. The equation also changes if the person doesn’t have to pay rent that’s twice what their mortgage payments are. Perhaps they are moving to a new city where the properties are much more affordable? Consider all these variables and the answer should be based on what benefits you the most.