The team at Heney Realtors in Central Vermont are your local experts in the region. We will help you weigh the pros and cons of selling your home. We will take into account the value of your current home, the equity you have in your home, the prospects for new homes, and current financing rates.
We understand that everyone's financial and personal situation is different. If you love your home, and you already have favorable financing, you might be well advised to stay put for the time being. Here are some signs that you shouldn’t sell your home right now, financial and personal.
Where is the Money?
Equity: Very specifically, equity is where the money is in your home. You will need to run the numbers. Even if you have lived in your home for over 5 years you might not have enough equity to justify selling. When you sell your home you need enough equity to cover the remainder of the mortgage and closing costs. This means you aren’t losing money. But you also want a profit. You will use that profit to cover the downpayment and closing costs when purchasing your next home. The more equity you have the better off you will be (financially speaking).
Recent Home Purchase: The general rule of thumb in real estate is that you need to stay in your home for 5 years. The number reflects the time it generally takes to cover closing costs, agent fees, and mortgage interest. This is just a general guideline. You need to run the numbers, and our agents will be happy to help. Many can do well to sell before 5 years. But generally speaking, in terms of finance, you will be losing money or just breaking even when selling before 5 years of living in your home. If you recently purchased your home, you probably shouldn’t sell your home.
High Mortgage Rates: If you have been fortunate to secure your mortgage with a desirable rate below 3% you might be well advised to stay where you are. Homeowners were able to find some great deals with lenders in the years leading up to 2022. Build your equity and enjoy your home. If you benefit from a low mortgage rate and low monthly payment, you shouldn’t sell your home.
How Much Will a New Home Cost? A new home might be calling your name. We are still in a seller’s market. You will have better leverage on the negotiating table when selling your current home, but the opposite is true when you make an offer on a new home. And current mortgage rates are over 6%. You are likely to pay more in interest to lenders. You will need to run the numbers and see if home prices and mortgage rates make financial sense for you. The agents at Heney Realtors will help you work the numbers so you can make an informed and responsible financial decision. If you are concerned about the costs of a new home, you shouldn’t sell your home.
We Love it Here! If you already live in Central Vermont and you love your home, neighbors, school district, local government, restaurants, and recreation you probably shouldn’t sell your home. Sometimes we look for something bright and shiny and new to mix things up. When you already enjoy your home, have secured favorable financing, and have enough room for the family to live and grow comfortably, don't sell. Consider a remodeling project. A remodeling project will give you something shiny and new to appreciate in your home, and you will likely increase the value of your home. It’s often best to discuss renovation projects with your seller’s agent to determine the best ROI with respect to your personal tastes to help satisfy the craving for something shiny and new.
It might be a good time to sell, or it might be much better to wait. The real estate agents at Heney Realtors are here to help you make an informed decision. We look forward to working with you and serving all of your real estate needs in Central Vermont. Contact us today!