If you’re a homeowner who has been seeing prices rise in this unprecedented real estate market, you may be considering selling your home. After all, you may be impressed with how much it has gone up in value and cashing in could seem to make sense.
Unfortunately, once you’ve agreed to sell, you can’t back out of your decision, and you’re stuck with the consequences. In some cases, you could come to regret your choice — and you don’t want that to happen to you.
To ensure you don’t end up wishing you hadn’t sold, watch for these red flags that putting your house on the market could be a decision you come to lament.
1. You haven’t looked for new properties to move to
While the rapid increase in home prices in recent years may be good news for you as a seller, you need to remember that you’ll also have to contend with high prices as a buyer. Inventory remains limited in many parts of the country. That means once you sell your current home, you could find yourself with few options for new properties to buy in your price range.
To ensure you aren’t disappointed with your options or left without a house to move to after you sell, you should see what’s on the market first. If you discover that you won’t be able to afford to buy a new place you like — even with the proceeds from your old home — then you may be better off staying put for a while.
2. Your home has features that would be hard to replace
If your house has a lot of unique and difficult to replicate features, such as a beautiful view or a large plot of land, you could end up regretting the decision to sell.
Be sure you think about the things you love the most at your current property and assess the likelihood of being able to replicate them after you move. If you won’t be able to replace the best things about your home, take the time to seriously think about whether you’ll end up regretting a move.
3. You may not be able to qualify for an affordable mortgage
Unless you are able to generate enough proceeds from the sale of your current home to purchase a new property mortgage free, you’ll need to apply for a home loan to buy your new place.
Mortgage rates remain competitive right now, although they are up from record lows. Still, you’ll need to be able to qualify for one on the basis of your credit score and income. If you don’t have the financial credentials to qualify for a new loan, you may be unable to purchase a home after selling your current property.
You don’t want to find yourself in a situation where you can’t locate a house you want to buy in your price range, can’t get a loan to buy a house, or regret giving up something unique your home had that was irreplaceable. Before you decide to take advantage of a hot housing market, take the time to really consider what will happen after you sell your home and make sure the outcome is something you’ll be happy with.