It can be hard to know when you’ve outgrown your home. So how do you know when it’s the right time to let go and sell it?
You’re feeling cramped, and you can’t add on
Your family might not be growing, but that doesn’t mean your lifestyle still fits in your current house. If you’ve started working from home, or have more pets than you used to, or maybe you’ve just never gotten over your dream of having a sewing room or man cave – your house might be too small. But before you jump to conclusions, see if pairing down your possessions works to free up some space. Another option might be to finish an attic or basement, add another room, or even add a whole story to your home. But, that doesn’t always work for everyone. If you’re property isn’t large enough or your municipality doesn’t allow it, moving to a bigger home may be your best option. To decide which option to go with, check your local building laws and get estimates from two or three contractors. It also wouldn’t hurt to check with your realtor. Sometimes adding on won’t increase the value of a home, and you don’t want to make big improvements that will only bring a small time return on your investment.
You have too much space
On the other hand, perhaps you’re feeling overwhelmed by vacant rooms and silence. Saying goodbye to a family home can be difficult, but you should consider how feasible it is to stay. If yard work and house upkeep are getting to be a little too much, or soaring utility bills are cramping your style, it might make more sense to move.
You’re over the neighborhood
Maybe you can no longer deal with the rigid rules of your homeowners association, or perhaps your neighbors turned their house into a rental for frat guys. Whatever the reason, neighborhood dynamics can change dramatically over time. And sometimes, you can change. Maybe the work commute didn’t seem like a big deal the first few years, but now you’re dreading it everyday. Or your kids are getting older, which can be a problem if you’re not in the right location.
Remodeling won’t offer a return on your investment
Giving your kitchen or bathroom a face lift can make your house feel like new again, which might be all you need to decide you want to stay put for years. But that doesn’t mean it’s a financially sound decision. Before making significant improvements, you should really study the neighborhood and know the highest price point of your neighborhood. If your home is already similar in style and condition of some of the priciest homes in the neighborhood, remodeling might be a bad idea, and you should consider selling instead.
You can afford to sell
Sure, you’re going to make money when you actually sell your house, but as the adage goes, it takes money to make money. So seller beware : You probably won’t be sitting around and waiting for the dollars to roll in. Before you consider selling, you should have the funds available to prepare your home for sale. Most sellers need time to make some minor improvements such as painting, landscaping, or updating flooring to get a good price on their home. Those costs will come out of your pocket at first, so it’s a good idea to have a cushion before you start.
You’re ready to compete
If you’re living in a seller’s market, you might be enticed to offload your home before things cool off. But don’t forget – once you sell, you’ll probably be a buyer too. If your market is hot, your home may sell quickly and for top dollar, but keep in mind the home you buy also will be more expensive. If you’re going to get out of there, you should make sure you’re ready to compete.
