by Maurie Backman | May 16, 2021
Many or all of the products here are from our partners. We may earn a commission from offers on this page. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
On the fence about selling? Here's how to make the right decision.
Recently, I was going about my business when I got a random knock on my door. A real estate agent was standing on my front porch. She explained that she had a client who was desperate to move to my area and would be willing to pay a very nice sum of money for my house.
I'll admit, I was tempted -- but only for about half a minute. While the idea of getting a nice payout for my house was appealing, I realized that if I agreed to sell, I'd have no place to live. And given that home values have soared across the country, I figured that what I'd gain in the sale of my house, I'd overpay for in a new one. And, also, I don't want to move. I get grumpy putting laundry into drawers -- I don't even want to imagine having to pack up my entire house.
But just because now's not the right time for me to sell my home doesn't mean it's the wrong time for you. If you're thinking of putting your home on the market, run through these questions to see if it's a good idea or not.
Get free access to the select products we use to help us conquer our money goals. These fully-vetted picks could be the solution to help increase your credit score, to invest more profitably, to build an emergency fund, and much more.
By submitting your email address, you consent to us sending you money tips along with products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Statement and Terms & Conditions.
One thing that really stopped me from selling my home in today's market is knowing how difficult it would be to find another one. Housing inventory is extremely limited in many parts of the country at the moment, my neck of the woods included. And home prices, as mentioned earlier, are ridiculously inflated. If you sell your home, you'll need to make sure you can swing buying another one.
Of course, you may be looking to downsize your home, in which case selling at a high right now could make sense. Even if you have to overpay a bit for a smaller home, there's a good chance you'll still walk away with a profit if your home sells for top dollar. But barring that, anyone who sells and buys simultaneously right now risks falling into the trap of not being able to comfortably afford a replacement home. You'll need to do some research to see what's feasible for you.
You've probably noticed that there's a pandemic raging, and that life has been anything but normal over the past 13 months. Selling your home means having to pack your belongings, move into a new place, and adjust to your new surroundings. Maybe you're up to that challenge. But if you're still reeling from the oddness of life right now, then you may not want to add to your stress by uprooting yourself.
Maybe you're convinced your home will sell for a high enough price that you'll be left with plenty of money for a down payment on a replacement home. But that doesn't mean you're guaranteed to get a mortgage. If your credit score isn't great or you have too much existing debt, you may be denied a loan, even if you can bring a sizable down payment to the table.
Before you move forward with a listing, you may need to take some steps to clean up your finances. It's also a good idea to try to get pre-approved for a mortgage before locking yourself into a sale contract.
You may be tempted to sell your home right now. I know I was, for that brief moment when a real estate agent practically begged me to. But selling a home isn't something you can do without a game plan, so before you make that decision, be sure it's the right one for you.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
The Ascent's in-house mortgages expert recommends this company to find a low rate - and in fact he used them himself to refi (twice!). Click here to learn more and see your rate. While it doesn't influence our opinions of products, we do receive compensation from partners whose offers appear here. We're on your side, always. See The Ascent's full advertiser disclosure here.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2021 The Ascent. All rights reserved.