If you have been living in your current home for a long time, you may have started thinking of selling it and buying another one. Before going ahead with the sale, consider the following factors to confirm that you are ready for it:
You Have Some Home Equity
Your property's equity is the difference between the value of your property and the outstanding mortgage on it. For example, if your house is worth $270,000 and its outstanding loan is $220,000, then the property's equity is $50,000. It is not advisable to sell a property with a negative equity because doing that would force you to look for money elsewhere to plug the gap after the gap. Selling a home with a positive equity, on the other hand, will actually leave you with some cash after settling the outstanding loan.
You Aren't Relying On the Proceeds from Buying another House
Selling your current home to buy another one is tricky, especially if you are relying on the proceeds of the current house to buy the second home. Note that there are expenses you will have to incur when selling a house; for example, you have to pay your real estate agent a commission, you may have to share the closing costs with the buyer, and there are also home repairs and staging costs to think of.
Therefore, if you are selling your current home and buying another one, it's advisable to go ahead only if you have other sources of funds for the purchase. Don't forget that you will also need money for the relocation expenses. The only exception is if you are planning to buy a home that is way cheaper than your current home.
The Market Is Right
Lastly, if you don't have to sell your house right now, and you are only planning to sell because you want to upgrade, then you can afford to wait for the right time. Even a difference of a few months may influence property prices in a big way. Nobody can say with certainty what the future has in store for property prices, but a real estate agent is better placed to offer a professional analysis compared to a regular homeowner. Therefore, consult an agent to help you determine whether it is time to sell or you should delay a bit.
When you have decided to sell the house, ensure you involve a real estate professional to help you with the transaction. A realtor can also help you assess the market to determine if it's the right time for you to buy and sell. Contact a company like Reece Nichols Real Estate for more information and assistance.