Few people would call selling a home fun. In fact, most people are more stressed when selling a home than they were when they bought it.
Still, Americans move every 5 to 7 years. Why are people so willing to sell a home so often if it’s likely to bring on anxiety?
Here are 7 common reasons people sell a home.
When the real estate market takes off, people enjoy pretty nice boosts to the equity in their homes. This usually brings on the temptation to upgrade to a bigger home using the profits from the sale.
Young couples often think in the moment when buying a first home. The term ‘starter home’ refers to a house that’s too small for couples once they start having kids.
Houses with too few bedrooms or no backyard are less attractive once families begin to grow.
If you’re an empty nester, you might opt to downsize your home once every bedroom in the home is empty. Instead of spending the extra cash to heat and cool rooms you’re not using, you could sell your home instead.
Downsizing gives you the benefit of a new neighborhood and a new purpose. Gone are the days when you’re in a home simply to take advantage of the local school district.
It’s a perfectly good idea to sell a home when you want to be closer to amenities that are useful to you in your new lifestyle. Perhaps you want a home that’s within walking distance to top restaurants or want a remote location where you can go fishing.
Retirees find downsizing much less stressful than trying to hold on to the needs of their old lifestyle. Since older adults are more likely to have lived in their homes for the length of the mortgage this can also mean they own the house outright.
Before meeting with an investor to discuss discounted pricing, be sure you’ve done your research on comparable sales in the area.
Your commute can make or break your relationship with your home. A home that seemed perfect when you bought it can quickly turn into a nightmare when it means spending hours and hours in the car each day. Racking up miles on your car also tends to convert it into a clunker much faster.
Sell a home to cut back on your commute freeing up more time for family. The amount you spend in gas and vehicle maintenance adds up over time making it more cost-effective to spend more on a home closer in town.
Many people come to this realization after experiencing heavy traffic or severe weather that reminds them of the downside of living too far from work. Aim for a commute that is within 30 minutes of where you need to travel each day.
4. New Job
There are many job-related reasons to sell a home. The first is getting a new job out of state.
When this happens, you have the option to become a landlord or sell your home. Many people opt for the stress-free solution which is selling the home.
Another common reason is a job transfer. If your employer decides your services are needed in another area, you might be asked to relocate. This means selling your home to free cash to take care of move-related expenses.
Some companies pay the entire cost of relocation, but there’s bound to be expenses that are missed. For example, you’ll need money for the down payment on a new home.
Few employers offer relocation checks that equal 20 percent of the price of a home. In rare situations, companies pay for any losses you incur for having to sell the home fast.
This happens usually during market downturns and the value of your home drops. Companies don’t expect employees who are relocating to take a financial hit on behalf of the company.
The final job-related reason to sell a home is becoming suddenly unemployed. If your job prospects don’t look good, you might opt to sell and aim for a rental until you’re back on your feet financially.
The same can be said for people with insecure income like freelancers and those who are self-employed. These individuals have a high risk of income problems because it’s tied to business problems.
When a homeowner dies, there are usually only two options available: inheritance or sale. Relatives who inherit a property might not want to deal with trying to manage it from far away.
There are expenses that come with homeownership that aren’t easy for relatives to handle. This usually leads them to put the house up for sale to avoid having to manage the property.
Getting a divorce is similar to experiencing a death in the family for many couples. Having to settle the property, split up your assets and start a new life usually involves getting rid of the home you share together.
This is especially true when both spouses’ names are on the mortgage loan. One spouse can’t simply buy out the other and move on.
There are strict mortgage guidelines in place that lead to an eventually lead to the home being put up for sale.
7. Health Issues
Aging adults have a lot to consider when it comes to aging in place. Are they at risk of falling in their current homes?
Are the rooms they need to access every day in close proximity? One injury could alter whether or not a senior can stay in their homes or move into an assisted living center.
Older adults who choose to age in place, still aim for smaller single story homes with floor plans that make sense for their lifestyles.
Preparing to Sell a Home
No matter your reason to sell a home, there are always buyers waiting on the sidelines. How fast they move to make a purchase offer depends on your local real estate market and the sales price of the home.
Getting a good deal is important to investors. Many investors target properties for sale where the owners have no emotions tied to the transaction such as with an inheritance.
Before you put your home up for sale, consider whether you’re willing to be flexible for a fast sale or are willing to do the work needed to attract top dollar. For more information and tips, check our blog for updates.