3 Questions to Ask When Thinking About Moving
Have you been considering moving, but you’re not sure when’s the best time to sell your house? A move is a serious commitment, but there’s no need let indecision hold you back. Realtor Magazine has put together a list of questions to ask yourself to help you make this exciting decision.
What’s Your Financial Situation?
Has your income changed recently? If you’re making more money than you used to, it may be time to invest in your dream home. An improved financial situation will enable you to make higher mortgage payments and still cover the costs of moving. On the other hand, if your income has recently decreased, you may want to consider downsizing. If the effort or cost of maintaining your current home has become difficult, a realtor can help you decide whether a smaller house, condo, or rental would provide you with a more comfortable home.
Another factor to consider when determining your financial situation is the equity in your current home. Usually payments are mostly interest during the first few years of your mortgage, so you won’t build much equity initially. If you’ve owned your current home for even five years, however, you may have significant gains. Check your annual mortgage statement or call your lender to find out how much you’ve paid down; remember to include this equity when considering the question “Should I sell my house?” because you may be able to afford more than you realize.
Calculating Capital Gains: Download the Worksheet
Have You Outgrown Your Current Location?
The neighborhood you picked for your first home may have been perfect for you at the time, but that doesn’t mean you have to settle down there for the rest of your life. Circumstances change; perhaps a move now could bring you closer to work, family, or your favorite hobby. Maybe your family has grown, and you would prefer a better school district or even simply a bigger house.
If all you need is more room, have you considered a remodel or add on? Sometimes you can create a bigger house by adding a new room, or even a new story. Such remodels require space to build on, however, as well as local permits and a substantial time commitment. Perhaps you simply don’t want to deal with the hassle of a remodel, or have considered the option but found barriers preventing you. Sometimes simply moving to a bigger home is your best option.
What’s the Current Market?
When the housing market is hot, your home will likely sell quickly and for higher profit. This can be great, but the new home you buy may also be more expensive. On the flip side, when the market is slow, you’ll have more bargaining power as a buyer but it may take a long time to successfully sell your current house. You should talk to a local realtor about the current market, and decide what you’re comfortable with.
You may also want to consider current interest rates. Lower interest rates will help you get more for your money, and will also make it easier to find a buyer should you decide to sell.
Partnership
At Lake and Mountain Realty, our mission is to embrace our customers’ needs and wants to make them our own. We want to work in partnership with you find your dream home. Contact us today to discuss when a move is right for you!