Are you wondering whether it’s time to sell your family home? These four conditions will help you make this important decision:
SELL when you have enough equity
You can sell with confidence when you have positive equity in your home. If you bought your home with cash, this should be no problem. If you used a mortgage, you have positive equity when the value of your property is worth more than what you still owe.
Check how much equity you own by comparing your mortgage balance with the estimated market value of your home. Consult with your real estate agent for a comparative market analysis that will produce the most accurate valuation of your property. In Phoenix, where home prices are steadily and significantly rising, chances are you are building equity.
Prepare to sell when you have enough equity to pay off what’s left of your loan. You’re in a great position if your equity is large enough to leave a substantial down payment for your next home – ideally 20% of the new property’s asking price. Consider other expenses like closing costs and moving fees, too.
DON’T SELL until you have found your next house
Buying your next home is an entire process of its own. With rising real estate prices and tough competition around the Greater Phoenix area, you should brace yourself for a thorough and involved search.
SELL when you are clear of debt and have enough cash in the bank
Unless you are a luxury buyer with plenty of cash to work with, make sure that your finances are in order before you decide to sell your current house. Pay off all other non-mortgage debt to improve your chances to secure a new home loan.
Make room for an emergency fund, as well. Keep enough money in reserve to cover at least three to six months’ worth of expenses instead of focusing all your resources in securing your mortgage and down payment.
DON’T SELL until you are emotionally prepared
Selling your family involves more than just financial considerations. You will also have to deal with strong and deep-rooted emotions – a lifetime’s worth of them.
Saying goodbye to the place where you and your family created experiences and memories together is hard and is bound to take a toll on you. Give yourself time to process all these feelings before you put your home on the market.
Your family and friends are always your most reliable options when you need to turn to people at this step. But remember that a dedicated and sincere real estate professional can also give you invaluable support at this time, along with important insights that you can use to move forward with your decision.
Get satisfying returns when you sell your family home. Work with the leading Phoenix and Scottsdale, AZ real estate experts of Urban Luxe Real Estate. Call us today at 480.359.6519 or send an email to info(at)urbanluxere(dotted)com.