Posted On February 04, 2020
In 2019, home sellers saw record profits, according to the 2019 US Home Sales Report by ATTOM Data Solutions. Sellers netted an average of $65,500, the highest level in 13 years. Higher profits were influenced by a strong job market, higher wages, stock market gains, and historically low mortgage rates. After three rate cuts in 2019, and no rate cuts expected this year, mortgage rates will likely stay low through 2020.
Are you thinking about selling your home? Overall, real estate professionals agree it’s a good time to sell, but whether or not you should sell your home depends largely on your situation.
Are you prepared to buy a new home?
If the home you are planning to sell is the home you currently occupy (not an investment property or vacation home) you’re going to need a new place to live. Have you already been considering a move? It may sound obvious, but before you sell your current home make sure you are prepared to buy a new home.
Will your return on investment be enough to fund this new purchase?
Depending on when you purchased the home, you may be looking at a substantial profit when you sell. How much would the down payment on your next home be? What about closing costs? If you’re planning on using your profit to purchase a new home, estimate what your down payment and closing costs will be and see if there’s any difference you’ll need your savings to cover. If you don’t have a need to move, it might not be worth selling right away.
Are you planning on downsizing or relocating?
Some of the most common reasons people move are to move to a larger or smaller home or to relocate to another city or state. If you are downsizing or moving into a home smaller than your current home, the profit you earn selling your home may go further than if you are purchasing a comparable home. If you are moving to a new city or state, preview the real estate market in that area. Talk with a financial advisor or real estate professional and review whether it makes more financial sense to sell now or keep your home as an investment property.
Even with home sellers seeing record profits, the question of whether or not you should sell your home depends on your immediate and long-term needs. If you want to review those needs with a mortgage professional, let us know.