1. You’ve Got Equity on Your Side
When the housing bubble burst, home values plummeted, sending many mortgages underwater. Thankfully, the tide has turned: According to CoreLogic, only 8% of homes with a mortgage had negative equity at the beginning of 2019.
It’s worth the sale “if your home has recovered enough value to provide at least 20% equity for your next purchase.” Why is 20% the magic number? Because putting 20% or more down on a home keeps private mortgage insurance (PMI) at bay. That could save you hundreds of dollars each year!
2. Your Home No Longer Fits Your Lifestyle
Another factor to consider is how well your home meets your everyday needs. “Empty nesters can really benefit from selling now while rates are low,” Linda says. “It’s very freeing to sell a large home, pay cash for a smaller one, and invest the rest in your retirement.”
Whether you’re sizing up or down, make sure your mortgage fits your budget. We recommend keeping your monthly payment to 25% or less of your take-home pay on a 15-year fixed-rate mortgage.
3. Rates are still historically low, drawing buyers into the market
We may not be enjoying the rock-bottom interest rates of yore, but by historical standards, today’s 30-year mortgage rates—hovering just above 4%—are still low. And experts agree mortgage credit will remain relatively cheap for most of the year.
That means the getting’s still good for buyers—and, subsequently, for sellers looking to unload their homes.
But rates are on the rise, and it’s been widely predicted that they’ll reach 5% before year’s end. Buyers know that the longer they wait to buy, the more expensive it will be.
Roughly translated, that means you’d be wise to sell your home earlier in the year, before more rate hikes kick in. Not only will you capture the market of buyers scurrying to close a deal, but if you’re buying after you sell, you’ll also benefit from those lower rates.
4. Remodeling won’t significantly raise the value of your home
You can guarantee that adding another bathroom will be favorable to your resale, but by how much is TBD. So, while it may be worthwhile to do some updates before listing your home for sale (for example, sinking $20K into the kitchen can up your home’s value by as much as $100K), consider first to gauge if making those upgrades would be worth it or not.
If not — and you’re still comfortable with the market value and selling price — go forth and sell your home.
5. Market correction may be looming
A lot of people who have been veterans in the real estate market are speculating that there is a market correction looming in US and Canada.
In fact, in Canada home prices are already starting to flatten out and that could be a signal that US is headed the same way. On the large scale, corrections are a regular event every few years, but you don’t want to be selling your home when it happens and, of course, sell at the top of the market.
HOME BUYER TRAFFIC INDEX
Did you know that today you don’t need a real estate agent to sell your home?
In fact, there are a lot of drawbacks to this, including high commission fees, time spent on showing your home, and sometimes many months of your home being on the market.
Realtors are still an option, but it is very often a much better route to sell your home directly to real estate investors. We specialize in buying houses for cash and in as-is condition (even if it needs significant repairs) and can close in as little as a week.
To Contact Us For A No-obligation Cash Offer Today – Call Us At (314) 334-1481
Or Send Us The Information About Your Home By Entering It At Chris Buys Homes in St. Louis