Do you feel like you’ve put your retirement plans in place? Selling your house too early could have some devastating consequences. Again, hanging on for too long may haunt you for many years to come. There isn’t really an exact age at which you should downsize. However, watch out for the following indicators.
When the market is in favor of sellers
Sustained growth in home prices over several years is the number one indicator of downsizing. You know it’s time to scale down when the market trends are in favor of home sellers. When you sell at this opportune moment, your profit margins will be high. This works well when you’re able to determine the value of your home and how it fits in the larger local home market.
Timing with the local seasonal trends
Buyer behavior tends to be favorable just around some specific seasonal trends. If you’re careful enough, you could tweak the time of selling your home to almost perfect timing. This study indicates that you could boost the profitability of your earnings up by 75% when you sell your house just at the right time. Not only that, but you also reduce your waiting time by several weeks that your house will take before the deal is closed.
When you feel that it’s a long unending stretch making ends meet
Home insurance, household, maintenance, utilities, property tax, and private mortgage insurance make up some of the costs that can prove to be unbearable. To add to these, the funds you’ve set aside for the maintenance of the house are depleted and the condition of the house keeps getting worse.
You feel your finances are stretched to the limit and nothing that you do seems to work to alleviate the situation. When you start getting into your savings to maintain the house, then it’s time to downsize.
You’re able and ready to do a trade-up
It’s always a thrilling feeling when the time is due to move to a bigger house. Selling your current home at the right time ensures you get a head start in paying for your new home.
Do you fit any or all of the above four descriptions? If yes, then it’s time to make the big decision. Don’t wait till it’s too late. Get a mortgage expert to walk you through this journey so that you don’t bypass any step that will cost you.