There is never a perfect time to buy or sell your house, but there are ways to know when you are ready. If you are thinking of selling your house, first ask yourself some questions to see if you are in a good position to sell. Here are some indicators that will let you know if you are ready to sell your house.
Ask yourself if you have a good amount of equity. Being financially to sell your house can come down to simply knowing if you have enough equity. Clearly, selling your home when you have negative equity is a bad deal. That’s called a short sale. Breaking even on your home sale is better, but it’s still not ideal. If you’re in either situation, don’t sell unless you must in order to avoid bankruptcy or foreclosure. So how much equity is enough? At the very least you want to have enough equity to pay off your current mortgage with enough left over to provide a 20% down payment. But if your sale can also cover your closing costs, moving expenses and an even larger down payment—that’s even better.
Make sure you Have your finances in order. take a hard look at your finances. If you’ve paid off all your nonmortgage debt and do you have three to six months of expenses in your emergency fund? If you do, that’s a good sign you’re financially mature enough to purchase a home again.
Of course, there will be cost associated with a new house, but don’t forget that there are also costs in leaving your old house. Don’t forget to account for the cost of leaving your current one. Hiring professional movers? Save up cash to cover the cost of packing up and hauling your stuff away. You should also set aside some cash to get your home ready for sale. Some fresh paint and elbow grease can go a long way into making a great impression and can help you sell your home faster. Good luck!
