7 Reasons Not to Rush to Sell Your Home

Property values are soaring. Demand is high, and housing inventory is low. You might be tempted to list your home and take advantage of a hot seller's market. But is it the right move for you? Here are some reasons you might want to think twice before putting up that For Sale sign.

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While you can sell your home any time you'd like, moving too soon doesn't allow your property much time to appreciate in value. There are capital gains taxes to think of, too. To build equity and avoid tax penalties, it's better to stay in your primary residence for at least two years.

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Any money you saved with your recent refi will likely get eaten up with closing costs on the new house. Plus, interest rates are on the rise. It's entirely possible that you'll find yourself at the same interest rate or higher than you were before if you sell now.

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Many homes with "good bones" are being sold as is for astronomical prices. Perhaps yours could be one of them. But what if you're leaving money on the table by not doing renovations and repairs? A home appraisal will determine the fair market value of your home in its current state. You might determine that it'll be worth even more to make some upgrades before you put it on the market.

You could get top dollar for your home if you sell now, but you'll likely also pay top dollar for a new one. You might even find that you're priced out of your area. If you're concerned about how to afford your next home on your current budget, wait for the market to cool down.

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Even if finances aren't an issue, you might find you're coming up empty with leads on a new home. A recent report by the National Association of REALTORS indicates that there are less than two months of housing inventory. Depending on how long it took you to find your current space, fewer options might not bode well for your home search.

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It's hard to predict just how much home values will increase when major improvements are made to the area. But if you live in a community where economic development is in the works and there is reason to be optimistic, you might want to stick around a bit longer so your home value can continue to increase.

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If you have found your "forever home" or are simply content to live in your current home for the foreseeable future, then don't let a hot seller's market sway you. Property values will continue to rise over the years as you build equity, so go ahead and enjoy your home.

The real estate market is hot, but don't let that be the sole reason you sell your home. Unless you are truly ready to make a move, it might make sense to wait until there is more inventory, so you have more options.

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