Reading the SIGNS. 4 Reasons why it may be time to sell your property?
Category News
One thing that we at Homes of distinction know well is that the home is an important asset. That being said, understanding when to invest, in what property, and what is suitable for you and your family is a very personal affair.
Unlike stocks on the market, your home is more than just an investment. It carries with it all the memories and emotional baggage created by the years of living there. So selling your home isn't always just a financial decision, it can also be an emotional one. It doesn't simply boil down to selling high and buying low, it is a lifestyle or life phase decision.
With all this in mind, how can you tell when is the best time to sell? We take a closer look at factors that influence our decision making and offer advice on the signs you should definitely look out for.
Life Phases - Growing family or downscaling
Ask yourself this question. Which phase are you in?
Bachelor, small family, growing family, downscaling, retirement?
A home represents your current lifestyle. Bachelors and career-focused individuals may opt for small spaces to "live out of a shoebox" but if you're a family with small children, this option is completely off the table.
Suburban dwelling families, especially those with young children and toddlers have to consider larger homes to accommodate their growing families. And a family with small children will also have different needs than a family with teenagers and college students. This is especially true when it's time to start thinking about schooling and proximity to the best ones in the country. You will often find that a search for the best schools often results in a search for a new home.
Beyond that, there comes a point in your family's growth where the kids are leaving for college and starting up their own careers while you're starting to focus on retirement. At this point, upkeep and vast amounts of empty space are simply untenable. This presents another moment where your lifestyle choices may be at odds with your home. At this point, selling up and moving into more modest homes may once again be on the table.
Are you emotionally ready?
It doesn't matter when, where, or how, the process of moving from one property to the next is an emotional rollercoaster. You're constantly thinking of memories and a part of you may not really think it's real. And of course, you wouldn't. Your home is the central pillar of your life. Moving upends the normality and customs you have grown so used to.
It's a trying process but you have to start somewhere. Begin by decluttering everyday display items such as wall pictures, furniture, and treasured mementos and put them into storage and do your best to make the place look neat and presentable for potential buyers. This period is exceptionally disruptive as people walk around your property and scrutinise your home. But you have to be prepared for this, and ultimately, learn to let go of the physical trappings.
Always remember your future home is waiting for you and that this too shall pass and try to not make this an emotional decision but what is good for your finances and what suits your family.
Analysing market trends
If you have bought high in an upmarket, meaning the property prices were high when you bought due to demand and now you want to sell in a low market you may want to reconsider. Speaking to one of our agents will help you make this choice.
Here are a few economic factors:
With relatively low-interest rates following the pandemic of 2020, we are still well within a buyers' market. Millennials and first-time buyers are quickly snapping up the property share so be prepared to sell your home to a younger market. This is especially true if it's a family home.
With that in mind, it's important to take note of the inventory available in your area as well as its desirability. This is called doing your comparables. Should you find yourself in a position where the area is attractive but there are few homes on the market then you are in a relative "perfect storm" situation for a good return on your investment.
A solid plan for the future
Keep in mind that selling your home is only half of the journey. You need to be sure that the financial implications of your future home are favourable. While the market still favours the buyer you need to consider your budget and whether you should sell now, or wait and build up more equity.
Should you have acquired your home during the recession or when home prices are relatively low then you are in an extremely beneficial position of selling for a reasonable price and still get a decent chuck out of your original investment.
Always remember to cash out when you have the equity to do so. This will make your next property purchase less of a financial burden.
To contact us, follow the link: https://www.homesofdistinction.co.za/
To contact one of our Property Practitioners, follow the link: https://www.homesofdistinction.co.za/agents/
Author: LV Digital
