For many individuals, deciding to purchase a home is one of the most important decisions they will make. However, another equally critical decision is deciding when to sell your home. Though our real estate agents can give market insight to assist with your decision, you must also weigh your financial situation and individual needs. Here are a few things to consider as you decide when to sell your home.

The Amount of Equity You Have in Your Home

The amount of equity you have in your home is an important factor in your decision to sell. If you're upside down in your mortgage (you owe more on the loan that your home is worth), it's likely best to wait to sell your home. When you're upside down on your home, you'll either need to bring cash to the table to cover the difference or get your lender to agree to a short sale. Both options are costly, and a short sale will damage your credit. 

Your Local Real Estate Market

Your local real estate market is another important item to research when deciding when you want to sell your home. When possible, wait and sell your home when property values are on the rise. This will help you obtain the highest price you can for your home. Even though no one knows exactly when Spokane homes for sale will secure the most money, your real estate agent can offer valuable insight into the current and future state of your real estate market. 

Your Ability to Qualify for a New Mortgage 

Many people decide to purchase a new home after selling their existing home. If you're in this category, you'll need to consider your ability to qualify for a new mortgage. Credit challenges or a high debt-to-income ratio can make it difficult to qualify for a new home loan, especially if your goal is to upgrade to a larger, more expensive property. A mortgage loan officer can help you determine how large a mortgage you'll qualify for and at what interest rate. If you can't qualify for the loan terms you need, you might want to take time to improve your credit and pay down debt. 

Access to Savings or Other Liquid Assets

When selling your home, you'll likely have quite a few expenses pop up. This is especially true if you decide to purchase a new home before you sell your current home. Some things that you might need to pay for include:

• Multiple mortgage payments (for your old home and the new home)
• Moving expenses
• Home repairs
• Staging costs

Ideally, you should have cash reserves or extra room in your budget to cover these additional expenses. 

Your Individual Needs

You have to decide if your lifestyle makes it necessary to sell your home sooner rather than later. Perhaps you have a long commute that you dread, or maybe you're expanding your family and need more space. If your home doesn't meet your or your family's needs, this can create a stressful environment that may encourage you to list the house more rapidly than you otherwise would. 

Want more info about the current real estate market? Contact us today to speak to an agent.