But you may struggle to buy a new home
Clearly, it’s a seller’s market. But it begs the question — once you sell, where will you live?
If you’re looking to buy and sell at the same time, you might struggle to find a new home to purchase due to the limited supply of houses. And while you might get a high price for the home you sell, it could easily be negated by the premium you’ll pay for another home you buy — and the higher mortgage you’ll need to take out to afford it.
Before you make the decision to sell your home, do some research to see what buying options you have. If you’re downsizing and looking to spend a lot less on a home, you may find that the numbers make sense.
For example, you might get $20,000 more for your home than you would have a year ago. And if you’re buying a smaller property at the same time, you might only pay an extra $10,000 for it. If that’s the case, you’d come out ahead financially. But be careful if you’re looking to upsize, because the opposite may hold true — you pay so much more for a new home that you wipe out your extra profits from selling and wind up in the hole.
Should you sell your home in 2021?
Selling your home in 2021 could work out quite well for you, but it could also put you in a situation where you struggle to find a new place to live. Research your current and future neighborhoods carefully before making your decision. If you’re selling and buying at the same time, make sure you’re in a strong position to get an affordable mortgage.
To reassure mortgage lenders that you can keep up with your home loan, make sure you have:
One thing to remember is that as 2021 moves along, housing inventory could open up a lot. This especially holds true as more and more people get vaccinated against COVID-19 and sellers start to feel comfortable having their homes listed and viewed by potential buyers.
If you want to sell your home at a time when there are fewer houses to compete with, now’s a good time to find yourself a savvy real estate agent to help with listing your home. If you wait too long and too many homes hit the market, you could end up losing that edge.
View more information: https://www.fool.com/the-ascent/mortgages/is-2021-a-good-time-to-sell-your-home/