Should I Sell My House? 6 Signs It's Time to Move On
By Stephanie Booth | Jul 10, 2019
Ten years. That’s the average amount of time a homeowner stays in a house before a sale, according to the National Association of Realtors®.
Think that sounds shockingly short? Or way too long? The fact is, people's reasons for selling their homes are different, as are their time frames.
Still, there are some common reasons—financial and emotional—that lead us to sell our current home and move on to the next one. And you don't always see the reasons coming.
Read on for some telltale signs it's time to start looking for the next home and packing your bags (and when you should settle in for the long haul).
1. You know the seller’s market is booming and you want in
Let’s start with one of the most obvious reasons to sell: You’re eager to make a profit on your property.
You need to gauge the key indicators of a strong real estate market, explains Allen Shayanfekr, CEO and co-founder of Sharestates, an online real estate investment company.
A few signals: The price per square foot for real estate in your area is increasing, the amount of time properties stay on the market is decreasing, and you’ve noticed an uptick in brokerage activity in your neighborhood. (If you're situated in an especially hot neighborhood, you might even get a letter or a knock on the door from a listing agent who wants to help you get in on the action.)
“If any of these are true in your area,” Shayanfekr says, “think about selling up.”
2. Because your neighbors just got what for their house?
Check online real estate listings in your neighborhood, and pay attention to the “recently sold” flyers in your mailbox to keep track of comparable home prices in your area.
“If other houses on your street with the same bedroom/bathroom count [as yours] are selling for a price that you’d be more than satisfied with, it might be time to move on,” Shayanfekr says.
Another sign of a hot home sales market is the relationship of asking prices to sale prices. If home buyers are making offers fast—for as much or more than sellers are asking—it's a seller's market. A buyer may offer you a sales price you can't refuse, too.
3. You’re sick of feeling financially stressed
Not everyone sells their real estate in order to pad their bank account. Some homeowners underestimated their ongoing housing costs and simply sell to ease their mortgage burden, or to cash in their equity and use it for other purposes.
If your property taxes or mortgage payments have become unmanageable, the best recourse may be to sell and find another home that’s more affordable, Shayanfekr says. Selling your home is better than struggling with a big mortgage loan, and possibly risking foreclosure.
To breathe easy, your monthly housing costs, including your mortgage interest, principal, property taxes, homeowners insurance, and HOA or condo fees if applicable, shouldn’t exceed 28% of your gross monthly income.
Before you sell your home to reduce your monthly living expenses, make sure you can find another home to rent or buy in your price range, and that you can qualify for a loan at current interest rates when you do.
4. You’ve grown—but your home hasn't
The starter home you moved into when you were expecting your first child isn’t necessarily the house you need now that you have three preteens and a capybara. It’s bittersweet to give up the memories you’ve made in your home, but if your living quarters are causing you stress rather than comfort, “take the leap and sell up,” Shayanfekr says.
Death, serious illness, divorce—these are all emotionally wrought experiences that may warrant a need for change. Relocation is another factor. But let's not overthink things.
“Maybe you’re just tired of the same old, same old, and it's time for a change of sc
