The National Association of Realtors recently released its 2016 second quarter HOME consumer survey. Among its findings, 80 percent of homeowners and 62 percent of renters believe this is a good time to buy a home. An enthusiastic and growing buyer pool is good for sellers, of course, and the survey also found that 61 percent of homeowners believe now is a smart time to sell a home.
If you own a home in a Central Florida 55+ community, there's certainly high demand these days, and it's been growing as more Baby Boomers retire. Houses in area active-adult developments are selling quickly and for competitive prices. If you've already made the personal decision that you're ready to sell but have been waiting for the right time in the housing market, it's a good time to act.
Putting the market aside, arriving at the decision to sell is a personal matter everyone has to come to on their own, based on their circumstances. It can be a tough call. Below are five basic questions to ask yourself that make it much easier to decide.
1. Does your home fit your current lifestyle?
If not, it may be time to adjust. For example, do you have rooms sitting empty now, or are you eager for more guest and entertainment space? Do you now have time to enjoy a pool or a bigger yard with a garden? Do you need an aging parent to move in with you? Would it be nice to get rid of extra space to lower your utility bills and cut back on all the cleaning and maintenance?
2. Are you still in the right location?
Priorities change over time, sometimes drastically. Maybe you're not working anymore, so the commute doesn't matter like it did when you bought. Or maybe you moved into a great school district, but now the kids are grown. Do you need to be closer to an aging parent or are there other relatives you wish you could see more often? Do you have easy access to everything you want nearby these days?
3. Are you out of debt and do you have some savings?
It's best to be financially stable when you move, particularly so you can handle unexpected expenses that often arise with a major change and investment into a new home. Remember to factor in moving costs—which commonly exceed $1,000—when deciding whether you can afford to sell and relocate at this time. If you're moving to acquire more space, will you be able to furnish it?
4. Do you have positive equity in your current home?
You almost certainly want to sell when you can get enough to pay off your mortgage and cover all selling costs (including the real estate commission). Preferably, you can also get money to put toward your new home. Many experts recommend selling when you can put at least 20 percent down on your new home, which can save you a great deal of money over time.
5. Is your home ready for sale?
Is it in good enough shape to bring in top dollar? If not, can you afford to get it there? If your house is in need of major repairs or updates, this is a significant obstacle to selling. You'll also want fresh coats of paint, and you might need to replace flooring. Even making minor repairs and paying attention to small details are important steps, and their costs can add up quickly. How's the curb appeal?
Focus on You—Not the Market
Again, selling your home is a personal decision, and obviously a big one. Yes, the market matters, and it can have a significant impact on the price you get for your home. But rushing to sell before you're really ready out of some urgent sense that you have to act now is never a good idea. Similarly, delaying something you're all too eager for in the hopes that it will soon be “a better time” isn't going to make you happy. So, when making the decision, look to yourself first, not the housing market.
