When Will Be the Right Time to Sell My Home?
There are three general areas that can determine when will be the right time to sell a home. However, personal specifics are, key to making an informed decision. The situation and criteria for buying and/or selling are unique to a given individualÃÂs circumstances. So the quick answer to the question is: It depends. This is a common sense response and having said that the reason for buying or selling a home can be framed in the context of the obvious.
The three general indicators or basis for selling a home are:
Emotional: aesthetically you no longer like your home or you neighborhood. You have visited a friend or a relative in another neighborhood. You see how they are living for all intent and purposes this new neighborhood appears to be attractive. The homes are bigger, the lawns seem greener, and construction is newer. The shopping malls are larger. The streets are cleaner and traffic seems or appears to be less. These reasons although subjective are strong. DonÃÂt under estimate them. On many occasion they have been the prime mover for individual(s) to sell or buy. Also keep in mind a subjective explanation when coupled with a reason governed by need or finance the combination can be a great impetuous for selling.
Need: in my subjective opinion is the strongest motivator for selling. Reasons governing a sale that meet my definition of need are, new job requires relocation outside of reasonable commuter distance. Children require a better school system and paying private tuition is not practical. The family has outgrown its existing home, two parents with four children living in a two bedroom house. Neighborhood has become unsafe and you have more than the means to relocate. You can no longer afford the home, the value is upside down and the bank has provided you with short-sale criteria to op-out of the property. There are probably many other reasons that may require your need to move but when considering these circumstances they are definitely not impulsive. They generally are balanced by some loss weighed against staying in the existing home where if such a decision was made the gain for leaving can be measured against various shade of what could be termed catastrophic.
Financial: putting a home on the market for profit is generally the second strongest reason for selling and is the least complicated. However, it is my suspicion this is the primary reason for the question. So in order to answer letÃÂs start with a basis by saying it depends on when the house was bought. Was it bought in a down market? Was it bought in an up market? Or was it bought in a flat market.
A quick definition of down market, when the house was purchased the transaction already resulted in a profit. Conversely in an up market the transaction inherently resulted in a loss. A flat it follows would be approximately at breakeven. For example the real estate industry is currently in a down market. So if you bought in an up market and intend to sell at this current time you will experience a compounded loss. Ideally the most profitable time to sell is when you bought in a down market and sell, in an up market. In this case the net would result in a compounded profit.
Therefore, the best time to sell is when you are able to compound your profit when coupled with a need to sell. Many may think it is all about the equity you have in the property but this just makes the loss more palatable or the gain the sweeter. So the suggestion is do not base your reasons for selling solely on how much equity you have in the property. Look to need primarily as a reason for selling and then profit. If you need something to break the tie then bring your emotions into play. Bottom line, selling a home should never be taken lightly. After all moving in terms of its stress quotient is right up there with loss of a love one, divorce and the lose of ones job.