Sorting out a home situation related to buying and selling can be quite tricky if not done properly. Overthinking is nobody’s friend and rational decisions are the ones that we should always be after. However, taking life changing steps is never an easy task and you should perhaps take your time and discuss matters long and hard with your loved ones and with professionals. Such a decision, for instance, is the one to whether sell or stay. That is short for “sell your property or stay put”.
This little sentence really says it all but until you find yourself in a similar situation, you are unlikely to fathom the true difficulties that arise when you are to choose whether to cash in on your house and move to a new place or to simply stay at your current residence and possibly renovate it. In the following piece we will take a look at some factors that might sway you one way or the other. We will also highlight the conditions in which you might need professional help and the aspects that can be discussed internally within the family. Our main goal is to have people prepared for the moment when they are right on the edge and need to determine if jumping or taking a step back is the right decision. It all comes down to two simple words – sell or stay.
So where do you start? First of all you need to clarify what your family needs and whether your current status is favorable or not. A number of things matter such as your neighbourhood, your financial rating, your family size and some others that we will focus on below. The most popular reasons to why people get rid of their homes and move on are:
Size becomes a problem. As your family grows, your home should probably also increase in size. Larger families are typically interested in estates with spacious yards, a driveway and perhaps even a swimming pool. You want to give every family member some privacy and you want to have enough room for those big gatherings.
Deferred Maintenance. Take a look around your home and write down all the things that require some sort of repairs. Problems with the roof or the moisture in that garage are usually large projects to deal with and with time they will only worsen and multiply. People often decide to sell or stay depending on the severity of these complications.
Change of lifestyle. A neigbourhood upgrade always makes sense especially when it comes to schools or distance to work. Paying the price in order to live on a decent block is completely in line.
And now here are the factors that might force you into staying:
Build equity. Money matters and the real estate business presents you with great opportunities if the market value of your home is there. We will mention equity again below.
Home repairs aren’t as dramatic. If you are convinced that you won’t spend so much on fixing your door knobs or repainting your living room then why not go for it? If you can breathe in some life into your home without paying a fortune, then that’s the right choice.
The area is nice. Don’t fix it unless it’s broken – that’s what they say. The same goes for your neigbourhood. If you are already satisfied with the surrounding environment, you children are safe, school is of walking distance, and you get to work relatively quickly, then is moving really worth the hassle?
As the first “symptoms” of wanting to move appear, you, like in many other cases, should contact a professional. Most top class realtors nowadays have a special service designated to help people in exactly these situations. See, the real estate market is exceptionally dynamic. It cannot be expected by the average home owner to be completely familiar with all the trends, ups and downs and overall movement of this immense and complicated industry. The service you are looking to get in this case is most commonly known as Home transition. Once you start making arrangements with your real estate agent a lot of things will fall into place and you will likely be led to the final decision whether to sell or not. You need to be perfectly well aware of the following three conditions:
Is your current home move-in ready?
Do you have enough home equity?
Do you have a home to move in right away?
In case the answer to even one of these is “no” then the easiest thing to do is stay put. However, people often swim against the tide and it just might pay off. Whatever you do, please don’t rush into this thinking that you will end up profiting after it’s all set and done. Since most families look for an upgrade in size or neighbourhood, the new home typically ends up costing more than what they have sold their own for.
The first two conditions from the list above are somewhat connected. It is best if you invest in your own home making it look convenient and attractive to potential buyers. In other words, by renovating it you increase the market value of your property namely your own home equity. The other way to acquire home equity is to always make payments against your mortgage if you have one. You want to sell when the market is near its peak. Unfortunately nobody can predict when that peak comes as the downfall is usually sudden, abrupt and unexpected. Again, speak with your realtor whether it is the right time to sell or stay.
From then on, it’s all about timing. Two things might happen – try to avoid both. If your home sells fast enough, you might have nowhere to live. This is a problem and sorting out the third item from the list above is vital to your endeavours. On the other hand your property might be slow to sell and if you have already committed to another seller then you might end up being stuck with two mortgages at the same time.
At the end of the day no third party can force you to choose whether to sell or stay. It doesn’t hurt to start gathering information without acting radically. Ask around, use some help and then decide. As the saying goes: If the perfect home isn’t on the market yet, stay.