Friday, November 23, 2007

What's the "right" reason to sell?

People decide to sell their homes for any number of reasons; recent marriage or divorce, unsafe neighborhood, need for increased living space due to growing family, unsatisfied with school district, etc. When you get down to it, some of the most common reasons for selling are not reasons that homeowners need to move, but reasons they want to move. With the current slow down of the real estate market, it's important to think about your reasons for selling your home. If you have a choice between selling or staying put, not selling definitely has it's advantages, especially now.


Selling your home and buying a new one can cost a lot of money. With the average home price down about 2% from last year and homes sitting on the market for months on end, it might be better to hold on to the home you're currently in. Still there are some reasons where it might be wise for you to bite the bullet and sell -

Job relocation - You just got a promotion; Great! But, the job is located about 150 miles from where you currently live. A portion of the Tucson population commutes to work in Phoenix daily. As gas prices and time away from family remain issues, sometimes it's smarter to pick up the family and move closer to the job.

Financial difficulties - If you're having trouble affording the home you're in it might be wise to downgrade to a lower cost living situation. Many homeowners are currently living beyond their means and have too much consumer debt; now they're being forced to sell because they can't keep their head above the water. This might be a good time to sell and move to a lower cost option while getting your finances in order.

Divorce or death of spouse - Too often losing a spouse or partner means losing income that helped pay the mortgage. Losing a partner to death or divorce can also leave bad memories and feelings in a home. It may be in your best interest emotionally and financially to sell and start a new life in a new home.

Retirement - Many new retirees find themselves living in a home that's bigger or more expensive then they need, so selling to downsize just makes good sense. Smaller means less house to clean! Active Adult communities are a popular alternative for retirees because they offer an endless list of sports and social activities, all within their own neighborhood.

If your decision to sell is based on wants, like wanting a bigger or nicer home, or wanting to move to a better neighborhood, it's wise to hold off until the real estate market turns around. With property values low, home buyer difficulties in obtaining loans and the overall state of the economy, it's better to just hold on tight and ride the real estate wave until the the market is more favorable to you, the seller.


2 comments:

Unknown said...

Valorie,

The idea is so simple yet so tough for many sellers to grasp. Homes are commodities just like a unit of stock.

The stock market goes up and down on an hourly basis. If homeowners could grasp the concept that their home's worth is based on a sliding scale each owner would be better off.

Instead I hear many of my Realtor friends lament the fact that people perceive their home's worth based on a "height of the market" scenario. We both know those days are long gone.

Gains and losses are simply paper or pie in the sky UNTIL acted upon.

Keep sending this message; hopefully more owners will heed the advise.

Btw I author deansguide and winecountryrogue (wine blog) over on wordpress. Be Well!

Great blog!

dean guadagni deansguide

Anonymous said...

People decide to sell their homes for any number of reasons; ..

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Julie
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