Page 62 - July2021

An article from a Chicago Lodge 7 Magazine sponsor
Should I sell my house? 6 signs it’s time
As much as you love your home, there may come a time when you start thinking: Should I sell?
According to the National Association of Real- tors, homeowners tend to stay in a house about 10 years. Think that sounds shockingly short?
Or way too long? The fact is, people’s time frames will vary widely based on their rea-
Sick of these ongoing payments? You could sell and buy low- er-maintenance real estate such as a condo or new construc- tion, Shayanfekr says. You might even rent, and let a landlord
worry about leaky pipes and other property hassles.
You’ve built up enough home equity
“If you sell too soon—assuming you have a mort- gage—you haven’t really built up any equity in the home beyond the down payment,” points out Adam Jusko, founder and CEO of personal finance portal
ProudMoney.com. “In the beginning, your mortgage payments are almost completely interest payments.”
sons for selling.
There are many reasons, financial and
emotional, that lead us to sell our home, and some you don’t always see coming. Here are some signs the time might be right for you.
It’s a seller’s market
In a seller’s market, you stand to make a nice profit on your property. It’s important to gauge the key indicators of a strong seller’s market, explains Allen Shayanfekr, CEO and co-founder of Sharestates, an online real estate investment company: The price per square foot in your area is increasing, the amount of time properties stay on the market is decreasing, and there’s an uptick in brokerage activity in your neighborhood. “If any of these are true in your area,” Shayanfekr says, “think about sell- ing up.” (If you’re in an especially hot neighborhood, you might even get a call or a knock on the door from a listing agent who wants to help you get in on the action.)
Local homes are selling for a lot
Check real estate listings in your neighborhood, and pay attention to the “recently sold” flyers in your mailbox to track comparable home prices in your area. “If other houses on your street with the same bedroom/bathroom count [as yours] are selling for a price that you’d be more than satisfied with, it might be time to move on,” Shayanfekr says.
Another sign of a hot market is the relationship of asking prices to sale prices. If home buyers are making offers fast—for as much or more than sellers are asking—it’s a seller’s market. A buyer may offer you a price you can’t refuse.
You’re financially stressed
Some homeowners sell because they underestimated their ongoing housing costs and want to ease their mortgage burden, or cash in their equity and use it for other purposes. To breathe easy, your monthly housing costs, including your mortgage in- terest, principal, property taxes, homeowners insurance and HOA or condo fees, if applicable, shouldn’t exceed 28 percent of your gross monthly income.
Before you sell, make sure you can find another home in your price range and that you can qualify for a loan at current inter- est rates when you do.
You’ve outgrown your home
The starter home you moved into when you were expecting your first child isn’t necessarily the house you need now that you have three preteens and pets. It may be time to “take the leap and sell up,” Shayanfekr says.
Other life changes, such as death, serious illness, divorce or relocation for a new job may also warrant a change.
You’re tired of home maintenance
The average homeowner shells out $2,000 a year for mainte- nance such as landscaping, snow removal, septic service, pri- vate trash and recycling, and housecleaning.
62 CHICAGO LODGE 7 ■ JULY 2021
LISA SANDERS
RealEstate
In fact, unless the housing market is seriously booming, you might lose money when you sell or you could even owe more than you get from your house after closing costs.
Remember: Selling isn’t free. You’ll have to cover the costs as- sociated with hiring a real estate agent, closing and, of course, purchasing another home. That’s why Jusko recommends stay- ing put for at least five years, unless you have an urgent need to move.
Plus, moving too quickly sends a bad message. “Buyers don’t feel good when it appears you are selling too soon,” Jusko cau- tions. “What was wrong with the house? Why are you leaving so fast? Are the basement walls about to collapse? Are the neigh- bors selling drugs and shooting fireworks at your house? Buy- ers can dream up all kinds of negative scenarios when a seller hasn’t owned the home for very long.”
Another reason not to sell is if you don’t meet the qualifica- tions to avoid paying capital gains tax on your profit. General- ly, you can exclude the gain from the sale of your home if you owned and lived in the home for two of the past five years. A sale before the two-year mark, if you don’t meet any of the ex- ceptions, could be a costly mistake. By the time you pay capital gains tax, you won’t have as much equity left as you’d planned. But beware of snap decisions
Of course, there are no promises that selling will be better in the long run. Take your time deciding if you should sell, then study the local market with your real estate agent before you price your home. If you underprice your home, a buyer may snatch it up too cheaply. If you overprice it, the right buyer may pass it by.
Jusko and his wife lived in Chicago in the early 2000s, when home values were through the roof. After about three years, they sold at a 40 percent profit. But soon after they moved to the Cleveland area, where they’re both originally from, home values plummeted.
“For many years, our home was worth less than what we paid,” Jusko says. “It’s only now — more than 15 years later — that I believe we could sell for more than our purchase price. And don’t get me started on how much money we’ve put into the house over that time.”
Selling your home is, above all, a personal decision. Do what will help you live, if not happily ever after, then happily for now.
Lisa Sanders of @properties has been selling real estate for more than a decade. Contact Lisa at 773-398-0378 or lisasanders.sold@ gmail.com.