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Sometimes you can just tell when you’ve outgrown a home. Whether it’s a need for more outdoor space, another bedroom for a growing family, a desire to downsize as you age or the appeal of a new neighbourhood, there are plenty of reasons why you might be feeling the pressure to sell. Before you make any big decisions, learn more about which signs to look for to ensure you get the most bang for your buck and that you’re ready to take the leap financially:
You’ve Got Equity On Your Side
Equity is the difference between what your home is worth and what you owe on it. Selling your home when you have negative equity is a bad deal. Breaking even on your home sale is better, but it’s still not ideal. If you’re in either situation, don’t sell unless you have to in order to avoid bankruptcy or foreclosure.
Ideally, you’d like to have enough equity to cover closing costs and put some money down on your next home. At a minimum, you want to have enough to cover the current balance of your mortgage, so you can avoid paying out of pocket. As long as you have even a small amount of positive equity, that’s a good sign that you’re ready to transition to a new home.
Your Local Real Estate Market Is Hot
If the homes in your neighbourhood are selling like hot cakes for tens of thousands over asking, it can’t hurt to have your home re-evaluated to see if the updated price tag is enough to help you upgrade in the ways you want to (size, neighbourhood, outdoor space etc.).
Just remember that if you’re selling your home, you’ll have to step into the buyers’ shoes when it comes time to buy again. If you can expect to sell your home for $50,000 over asking, it’s safe to assume you may have to pay that same amount over asking for a new home in the same market.
Your Home Space Needs Have Changed
If, like many people, the way you use your home has changed in the past year, you may be considering some renovations to make it work better for you. If these new projects won’t pay off by increasing the property value down the road when you’re ready to sell, it may be time to consider moving to a new home to get the upgrades you’re seeking.
Your Home Doesn’t Require Any Big Upgrades Or Fixes
As the saying goes, don’t sweat the small stuff. While a fresh coat of paint in the living room and a new light fixture in the dining room might make you feel more positive about showing your home, chances are they’re not going to add any value to the bottom line. What’s most important is that your home isn’t in need of any big upgrades or major overhauls that would send buyers running in the opposite direction (think leaky roof, foundation issues etc.). If you’re not sure about what type of renovations would increase the value of your home, talk to your real estate agent for insight.
Before you make any quick decisions about putting your home on the market, talk to a real estate agent to learn more about the current market and your options as a seller. If you’re ready to start the conversation, we can help. Get in touch with us today!