“Everyone’s saying it’s a seller’s market,” Donna said. The Warwick resident has owned her home for just over six years, and has seen properties on either side of her home sell within the past two months. “If there’s an opportunity to make money and improve my financial situation, I want to take advantage of it,” she explained. “But how do I know if now’s the right time for me to sell my house?”
The answer to that question boils down to one simple term: equity. To determine your home’s equity, you subtract your current mortgage balance from your home’s market value. This sounds simple, but accurately determining your home’s current market value can be tricky. Online property valuation websites can provide very encouraging numbers, but they’re not always in alignment with reality. Depending on the current market conditions in the neighborhood you live in, the valuation you receive can be much too high or much too low. For a more reliable valuation, work with a local real estate agent. Because they’re focused on selling homes in your area and they have working knowledge of what homes are actually selling for, the valuation a local real estate can provide will be more helpful in making your decision whether or not to sell.
Ideally, you’ll have enough equity in your home to cover the remainder of your mortgage and set you up with a 20% down payment on your next home. It’s also nice if the sale price is high enough to cover closing costs and moving expenses. If your future plans don’t include purchasing another home – for example, if you’re going to move in with family or are planning to rent, the equation is slightly different. Again, an experienced local real estate agent can walk you through the decision making process.
Is now the right time for you to sell? Talk to one of our experienced Warwick RI real estate agents today to learn what you need to know to make the right decision.