Selling Your Home: Benefits and Drawbacks
Parting with your home comes with many emotions, especially when you’ve lived in it for some time. Homes hold lots of memories, good ones, as well as not-so-great ones.
The laughs and the cries, highs, and lows, unforgettable events, the kids’ first steps or words, the first big job, that special corner or room, the familiar faces and neighborhoods, and a host of others make up the nostalgic feelings that often come with selling your home.
The pandemic significantly affected the real estate market. Statistics reveal that in the United States, over 6.1 million homes were sold in 2021 (the most since 2006), and 822,000 newly built homes were purchased in 2022. This shows that a lot of homes are being bought and sold across the country.
But why are people selling their homes at such an alarming rate?
Common reasons people sell their homes
Money is the reason anyone sells any form of property. Reports have stated that the gain in equity per mortgage holder has increased by over 200% of its initial value as of the previous year. That certainly helps a seller see an infusion of cash.
With such a favorable market and a good offer on the table, a homeowner would most definitely be willing to sell.
If a homeowner must move away from the city or even relocate outside the state or country, they’ll most likely seek out the means of selling their home.
Change in status
It’s not news that a new job, promotion, or salary increase could drastically raise the purchasing power of an individual. And as such, changes in that manner could also mean getting a new car, a new house, and all the other perks.
A desire for more space
This is very common among younger couples thinking of getting a more spacious residence with the expectation of accommodating a larger family.
Benefits of selling your home
Easy access to loans and equity
In cases where you got your home as an inheritance, and you no longer need it, rather than keep it and continue to spend on its maintenance, the wise choice would be to put it up for sale; especially if it’s in a busy neighborhood. This keeps you from spending more than you should while ensuring you enjoy the benefits of your inheritance.
Also, senior citizens looking to settle the existing mortgage on their homes while supplementing their retirement earnings with whatever equity value is left in the property can take advantage of a reverse mortgage. It is a great way to keep your home until you’re gone or decide to move.
Ability to get more than the asking price
In the current market, lots of properties are in high demand, and if yours is in great condition and in a sought-after neighborhood, you will most likely spark interest from lots of buyers, which might lead to a bidding war. Now, you’re getting much more value for your home.
Helps to move on from bad experiences
If your home or current neighborhood brings nothing but unpleasant memories, moving away and placing the house up for sale might be what you need to get to the next healing phase.
Drawbacks of selling a home
Missing out on the future value
Houses have proven to be a source of wealth accumulation over time. A recent study shows that homeowners amassed an average of $146,200 in housing wealth due to the current nature of the market over the last five years. Therefore, selling your home at any point means a tradeoff on any possible future increase in value.
Finding a buyer for the right price
This might also be a hassle, especially if you’re considering letting go of your home as soon as possible. Realtors and buyers with a hint of that would not cease to take advantage of the opportunity to get your home at a price below the market value.
Realtors are often guilty of overcharging commissions on the houses they sell.
Selling your home could mean you lose the essence and rich history associated with it. For homes that have been in a particular family for a long time, it also means you let go of the sentiments and attachments passed down from generation to generation.
In your best interests, go over your options and decide on going ahead with a sale, or keeping your home a little longer. Whatever your decision, ensure the benefits outweigh the drawbacks.