Is it the right time to sell my starter home?
When you think of a starter home, you probably think of an adorable cottage where you and your beloved started your life together. The warm fuzzy feelings associated with starter homes, however, can quickly fade when too many people are added to the mix, and those close quarters become a bit too much to bear. If you are considering selling your home, especially if you are first-time sellers, there are a few things you’ll want to ensure before you take the leap and list your home and opt for more square footage.
You can Incur the Cost
Selling your starter home is not going to finance the purchase of a larger home, in most cases. Before you decide to sell your smaller property for a larger one, you’ll need to take into consideration all of the costs associated with a larger property. These costs include everything from the mortgage payments, to the larger utility bills, to taxes and lawn care. Figure out what you are most comfortable paying each month, and figure out what you can afford. This simple exercise can help you determine if a larger home is within your reach, or if you should try to make do in your starter home.
If you are selling your home, then you should be able to incur all of the costs associated with your new dwelling, leaving 35 percent of your income for discretionary spending and 22 percent of your income for savings purposes.
You Have Outgrown the Abode
When two people buy a small house together, all may seem well for a while. After all, two people in a house, even a cozy house, have plenty of room. Problems begin to crop up when you start adding children and pets into the equation. As your family expands, you’ll notice that clutter is a constant nemesis and there is no place for the family to really gather together purposefully, or get away from each other for that matter. This is one of the telltale signs you should be considering selling your home.
Starter homes are called starter homes for a reason. They are too small and too cramped to hold a plethora of children, pets and all of the gear that comes along. Quaint for newlyweds can quickly turn into cramped with kids. If you are nodding along, it is probably time to start selling your home, in hopes of affording something larger.
You Want to Take Advantage of Lower Interest Rates
Interest rates, being at a low point, are ideal for new home buyers, and could garner you a good deal on a larger home, if you are currently paying a higher interest rate on your starter home. Whether or not this is beneficial or if it will impact your bottom line largely depends on how long you’ve been in your starter home, and your current interest rates and credit scores. Before you make a decision, it is a good idea to sit down with a mortgage expert and figure out if a lower interest rate can help you afford a larger home.
Selling your home is a personal decision, but it is important to be pragmatic about the prospect. Before you list your home, sit down and consider the financial implications and the lifestyle associated with a larger home, as well as the price tag that comes along with it. Finally, enlist the advice of an expert before you make a final decision.
Equal Housing Lender