When is the Right Time to Sell?
Deciding whether or not to sell your home is a big decision but it shouldn’t be daunting. Determining your home equity, the current market conditions, and your potential replacement home options are major factors in making this decision. My hope is that the following information and my expertise will assist you in determining whether or not now is the right time for you.
Do you have positive equity in your home? Meaning do you have a positive difference between what you paid of the home and what it is currently worth. If you are unsure, please reach out and we will complete a Comparative Market Analysis(CMA) on your specific property. This will provide you with resent sales in your area that are similar to your home. It will also allow us the chance to look at improvements you have made and how they could increase your value. The sale price will be reflected in what the current homes have sold for in your area as well as the condition. For any type of loan a buyer might use on your property, an appraisal of the home value will be required by their lender. The appraisal is completed by a licensed appraiser who will take into account the current market prices as well as the condition and improvements of your specific home. They will determine the value of the home based off that information, which is the amount the lender will be able to lend the buyer to purchase your property.
Market conditions vary drastically due to several reasons such as location, season, size & improvements. One of the largest factors in determining whether or not to sell is the current inventory or competition of other homes on the market. A lack of inventory signifies a need for additional inventory or available homes on the market. According to the Denver Post, Colorado's population jumped by 101,000 in just 12 months! Meaning there is a lack of inventory along the Front Range due to the increased need for housing. Given you price your property correctly, the average days on market given by the National Association of Realtors is just under 2 months! In many situations, we are dealing with multiple offers and having a Realtor assist you in navigating these offers is essential to completing a successful sale.
Great news for you, looks like we will not have an issue selling your home. Now your greatest concern, given that you plan to stay in Colorado is how to find another home and how to compete against other buyers. There are several reasons your offer on a replacement home will be competitive. The first one being, the equity you will be moving from one property to another. Now, you will have a significant amount of funds for your down payment. Our hope is that we have at least 20% down in order to remove PMI or Primary Mortgage Insurance on your loan. The second helpful piece in regards to the lending side is the loan type. Your lender should be able to complete a Conventional loan for you as compared to an FHA loan given your percentage down. The last piece that could affect your position as a buyer in this market is your price point. Depending on whether you are planning to purchase a larger home, downsize, or purchase a renovation project will have an impact on your housing options. Entry level homes priced under $300,000 have more competition that higher end homes. On the other side of that, downsizing home size also removes competition as many people are looking to purchase because they need additional space.
Overall, given the current market and your potential equity in the home, it could most definitely be a great time to sell your property. Interest rates still remain at all-time lows and opportunity still abounds in the real estate market. As always, please feel free to reach out if I can assist further or answer any additional questions.