The average homeowner stays in a house 10 years, according to the National Association of Realtors. While many people’s reasons for selling their home are different, Realtor.com offers some tell-tale signs that can help you know when it’s time to begin packing or whether you should go the distance.
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The seller’s market is booming and you want a piece of it
Eager to make a profit on your property? First, you should check the key indicators of a strong market. A few signals: The price per square foot in your area is increasing, the number of time properties stay on the market is decreasing and you’ve noticed more brokerage activity in your neighborhood. (If you’re situated in an especially hot neighborhood, you might even get a letter or a knock on the door from a listing agent who wants to help you get in on the action.) If any of this is true in your area, you might want to think about selling.
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Your neighbors just made a hefty profit on their house
To keep track of what comparable homes in your area are going for, examine online listings in your neighborhood and pay attention to recently sold flyers in your mailbox. If houses on your street that have the same number of bedrooms and baths as yours are selling for a price that you’d be happy with, then it might be time to move.
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You’re feeling financially stressed
While some homeowners may sell to pad their bank account, others might have underestimated their ongoing housing costs and simply want to ease their financial burden. If your property taxes or mortgage payments have become unmanageable, the best recourse could be finding another home that’s more affordable. A rule of thumb: Your monthly housing costs shouldn’t exceed 28 percent of your gross monthly income.
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You’ve grown—but your home hasn’t
The starter home you moved in to as a young couple isn’t necessarily the house you need now that you have children. Although it’s difficult to give up the memories you’ve made in your home, you might want to sell if your living quarters are causing you to stress rather than bringing you comfort. Death, serious illness and divorce also are experiences that might warrant a need for change. Relocation is another factor. But maybe you just need a change of scenery.
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You’re over high-cost maintenance
The average homeowner shells out $2,000 a year for maintenance services, according to a recent report by Bankrate. This includes scheduled services, such as landscaping, snow removal, septic service, private trash and recycling, and housecleaning. If you’re tired of seeing these payments make a dent in your bank account, you might be better off in a low-maintenance condo or a new-build property.
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You’ve put at least five years into the relationship
If you sell your home too soon, you’ll find that you haven’t really built up any equity in the home beyond the down payment. That’s because mortgage payments in the beginning almost always go toward interest. In fact, unless the housing market is seriously booming, you might lose money when you sell because you’ll still have to shell out money to cover all of the costs associated with hiring a broker, closing and, of course, purchasing another home. Moving too quickly also can send a bad message to prospective buyers, who could think something is wrong with the house.