Is Now the Right Time to Sell my Home?

IS NOW THE RIGHT TIME TO SELL MY HOME? 

When it comes down to it, lifestyle changes are often the motive behind our decision to sell. Whether you are relocating, have a growing family or are downsizing, working out when to time your sale can be intimidating – particularly for first-time sellers.

The decision to sell your property may not coincide with the ideal market conditions. Therefore it is important to know what is happening in the property market and the economy as a whole, as the real estate market generally reflects the current state of the broader economy.

Furthermore, you should always reflect on your own personal intentions, your capability to finance a new property, and meet ongoing repayments and capital gains tax implications for selling an investment property.

Keep in mind that if property prices are low, you may get less for your house than you hoped, buy you’ll probably pay less for the house you intend to buy- and vice versa when prices are high.

Here are a few other things to keep in mind before planting a For Sale sign in your yard. The information below was derived from the insightful website of The Motley Fool, “When is the Right Time to Sell?”

A unique asset
First, remember that your home isn't like other investments. When housing prices are up, your four walls and a roof may be the best investment you've ever made, but pocketing the profit is just half of the process. There are property taxes to consider and school systems to research; commutes to be calculated and condo fees to be factored in.

And guess what? If your house is worth a lot, odds are any house you're interested in moving into also has a hefty price tag as well. You can always find a rental, which isn't a bad option -- if you successfully time both the top and the bottom of the real estate market.

Home, sweet investment

Being a homeowner, you'll find it easy to think of your home as a piece of your overall portfolio. You are the PRESIDENT of 123 Royal View. Make the most out of this piece of your portfolio by making sure you aren't overpaying for your mortgage, and that you are making necessary upgrades to extend the life of your home – have this be your focal point and enhance your time there.

In fact, you should approach the housing market -- your housing market -- with the attitude of a buy-and-hold investor. Long-term buyers know that they will most likely be rewarded, despite the market's day-to-day ups and downs. Time in the market is a lot easier than market timing.

Granted, things change. It's pretty rare these days for people to live in the same area for their entire lives. Depending on where you move, you might find yourself in a totally different real estate market, with different price levels and available features. But if you're lucky, you'll always be able to at least maintain your standard of living when moving from house to house -- thereby enjoying the slow but steady profits that rising housing prices have given homeowners over the decades.

Hot or not 

Whatever history tells us about this time period, remember that a home is where you live. Its value in your asset mix is more than a number on a piece of paper. But you already know that. And, honestly, after a weekend of watching homes being razed, refurbished, tricked out, flipped, and traded up on cable TV, we can't blame you for wondering whether you should have dumped your house at the peak and rented a place until everything cratered.

Website Cited: The Motley Fool; “When is the Right Time to Sell?”