If you have been toying with the idea of selling your home, there are a couple reasons why this might be the year to actually do it.
- 2018 is predicted to be a seller’s market. Housing inventory is low, which means you’ll have less competition out there. And as more buyers compete over a smaller pool of homes, prices will continue to increase. Without a significant increase in new construction, it is likely that the inventory will stay low and prices high.
- Changes to the income tax law may have you thinking about downsizing. Tax write-offs for property taxes will be capped at $10,000. Also, you will only be able to write off the property tax for your primary residence (changed from your primary residence and one other). If you’re currently paying more than that and downsizing is an option now may be the time to do it. If you’ve got a vacation home you may benefit from offloading that as well. The tax deduction for home equity loans has also been repealed.
That is not all there is to consider, however. There is a lot that needs to be factored in when you are deciding whether now is the time to sell, or not.
- How much debt do you have? If you have debt in addition to your current mortgage you may not want to take more on just yet unless you are downsizing considerably and the sale will help you pay down that extra debt.
- Having cash on hand for things like closing costs and repairs and updates to the home you are selling and the one you are buying is something you will definitely need. As much love and hard work you have put into your current home, most homes need some updating to sell successfully. You also don’t want to be caught without funds if something in the new place breaks.
- The size of your down payment makes a difference. If you are planning on taking out a large loan it may not make sense, especially if you’ve got a comfortable mortgage payment now.
- If you plan on selling your home and renting a new place, don’t. Rents are currently incredibly high, and it is likely that you are paying less per month now for your mortgage than you would be in rent at the new place.
- Do you know how quickly things are selling in your neighborhood and for how much? Even though 2018 is predicted to be a seller’s market- not all markets are created equal. By that I mean there are just some areas that for whatever reason have a hard time selling or the home prices are not what you would expect. Get to know the real estate market in your neighborhood so you don’t come up with any unexpected surprises.
If you are seriously considering selling your home this year, you will definitely want to get in touch with a qualified, honest Realtor® who can help you decide if you are ready and help you through the process.
I am always available to answer your questions about selling your home you can contact me here, or you can call me at (508) 317-0201.