For many homeowners, downsizing can offer several key advantages. Here are some reasons why it may make sense to sell a home and move somewhere smaller or more affordable.
1. Local Market Trends
As the character and demographics of locales change over time, property with a modest value can go on to appreciate by double digit percentages. If your local market has seen a higher demand for housing and you have observed that listing prices and closings are much greater than what you are accustomed to seeing, it could be an opportune time to take advantage of the gap up in value.
2. Too Much House
The cost of maintaining a large property can be substantial. Heating and cooling alone can represent a significant part of a household budget. Square footage is typically a big factor for expenses such as property taxes or HOA and condo fees. As family dynamics change, it may make sense for people to change their living situation.
3. Retirement Planning
A lot of homeowners can find themselves running behind on saving for retirement, after putting a lot of equity in their homes and keeping up with the ongoing increase in the cost of living. Nationwide Real Estate tends to be a fairly safe investment when compared with other types of investing opportunities, but having too much of your total equity in your home could prevent you from generating better returns with your personal net worth. Selling your home to allocate some of your wealth in a diverse portfolio of interests could prove to be advantageous for your financial future and help stay on track to reach your retirement savings goals.
4. Equity Issues
When mortgage payments become burdensome, it is important for homeowners to do everything that they can to avoid a default. Nonpayment can cause them to lose their existing equity in a home. Rather than risking a default or refinancing and widening a debt-to-equity ratio, selling could be the best course of action.
5. Capital Needs Concerns
Needing to take on home repairs that represent a serious financial hardship may make selling your home the right option. A home that needs major improvements will not command as high of a sale value as a home that does not need any work at all. However, a lot of buyers are willing to take on a fixer-upper if it has other desirable features.
Knowledgeable brokers can help homeowners evaluate their options. Contact Chapel Hill Realty Group online, or call (919) 942-4149 today to receive professional insight about listing your home for sale.