Keep or Sell Your Home?
Should you sell your home? Or perhaps you should rent or complete a major renovation to get the home you want. There are reasons to sell your home just as there are reasons for finding alternatives to selling. View what’s best for you before starting down this road.
Selling
There are many reasons people sell their homes, from career changes to needing a change in lifestyle or scenery. Here are a few tips to consider when selling:
- Timing the sale of your existing home with the purchase of a new home.
- Analyze whether you are in a “buyer” or “seller” housing market. If in a seller’s market, timing the sale of your home is on your side.
- If you are in a buyer’s market, timing is less controlled. Understanding your market will determine how fast you need to move and how much room you have to negotiate.
Selling in a Seller’s Market
You can act fast in a seller’s market. Home prices are firm and homes sell quickly even before reaching the MLS listing. Many homes can sell within hours and multiple contracts may be submitted. Buyers will compete for the top price, giving you room to negotiate for best price and closing terms.
Selling in a Buyer’s Market
In a buyer’s market, there are many homes on the market compared to the number of buyers. You may need to negotiate favorable terms and contingency clauses to sell your home.
An Ideal Situation
The ideal situation is to sell your existing home and move into your new home all within the same day. But markets often don’t work that way. You may not be able to sell your existing home quickly if you are in a “buyers market.” Likewise, the new market you are moving to may be in a “Sellers Market,” forcing you to buy quickly for the home you want. Under this scenario, you may have to rent in your new market while you wait the sale of your existing home to avoid holding two mortgages.
Another option is getting a “bridge” or “piggyback” loan, which allows you to borrow the equity in your second home to pay part of the mortgage on your new home. When you sell your existing home, you simply pay off the loan.
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