4 Major Reasons that People Sell their Homes
There are many life occurrences that cause people to sell their homes. Though everyone’s situation is different, there are 4 overarching reasons that people choose to sell.
People sell their houses for a variety of reasons. Even though plenty of homeowners expect to settle down in their home for decades to come, life changes and we have to take action to create a better lifestyle.
While there’s no one size fits all reason why people sell their homes, there are certainly major recurring reasons that justify the sale. It could be a personal issue, a poor financial fit, or a lifestyle adjustment. Let’s dive into some of the reasons.
1. Financial reasons
Sometimes people buy a home that they can’t afford. In other instances, circumstances change overnight. The truth is, there’s so much more to owning a home than just locking in your 30 year mortgage with a lifetime of comfort.
A career switch, new bills, or medical condition could drastically change your take-home pay every month. Once your bills are soaking up more than 75% of your income, financial planning becomes substantially more difficult. Not to mention, homeowners may realize their home is much larger than what they actually need. Larger homes require more maintenance which means costly repairs and replacements are holding you back from your financial stability. In a case like this, it doesn’t hurt to sell, downsize, and find a better opportunity in the market.
Selling a home might be the best course of action for homeowners who inherited a property from a loved one. While owning an inherited property has amazing tax breaks, some people prefer to simply sell it for a number of reasons. The first reason is maintenance involved with owning a home. Taking on an additional property requires upkeep including repairs and utility bills. Selling an inherited home takes time and the owner has to go through probate and other lengthy legal hoops.
During this period (which could take well over a year) it’s best to keep the home in good shape so the value doesn’t drop. This includes paying utility bills so the heat stays on and pipes don’t freeze in the winter. Additionally, maintenance is key such as making sure the lawn is cut so the home doesn’t look overgrown, cleaning out full gutters, and getting annual roof inspections after bad weather. While these are just a few maintenance tasks, the list goes on and some owners simply would rather sell for the access of funds.
Selling a home during a period of divorce is one of the most challenging decisions that have to be made. While assets are determined and split, former couples often would rather sell the home and start fresh. Since a majority of couples purchase a home together, sometimes it doesn’t make sense to have one spouse live in the home with extra space. Property taxes, upkeep, and taking on a whole mortgage could simply be too much to afford.
Homes often have sentimental value, but after a divorce, selling becomes a viable option. Instead of living in a home surrounded by past memories related to the marriage, it could be better just to sell the home and move on from the situation. It’s already an emotional time for both spouses and divorce is taxing, a home sale makes sense regardless of financial reasons.
Every stage of life requires an honest evaluation of your living situation to determine if your goals align with your home. Lifestyle is a major reason people sell and move to a different home because it could be a time for change. For instance, retirement after spending many years in a home.
Once children grow up and move out of the home, it may be a time to retire, downsize, and shift to something with less space. At this point, you can minimize maintenance costs, take on a lower mortgage, and spend the funds doing what you truly enjoy doing after retirement.
No matter what your situation is, you have options
It’s natural to feel overwhelmed, but it doesn’t have to be that way. One course of action you can take is to explore your options. For example, selling with a real estate agent, an iBuyer, wholesaler, or otherwise. As you make your decision, consider what you ultimately value. Is it less hassle? A fast close? No renovations? If these values resonate with you, there’s another solution that might be just what you’re looking for.