7 Ways Your Wallet Is Telling You It’s Time To Sell Your Dream Home
Buying a home isn’t just the American dream — it’s the dream of many people around the world. There is status and stability that comes with owning a house, a place where you and your family can feel secure.
There is also the notion of being “house poor,” where you own your home but can keep up with the expenses tied to it, putting pressure on your financial situation.
Read Next: I’m a Real Estate Agent: 3 States Where You Should Sell Your Property in the Next 5 Years
Trending Now: Become a Real Estate Investor for Just $1K Using This Bezos-Backed Startup
GOBankingRates spoke with real estate and money experts about some common indicators that you can’t afford homeownership. Here are the seven ways your wallet is telling you it’s time to sell your dream home.
You’re Struggling To Pay Your Mortgage and Property Taxes
Buying a home does not just send when the deal is sealed. Afterwards there is a monthly mortgage payment and annual property taxes, both of which can hurt your wallet.
“If you find yourself constantly struggling to make your monthly mortgage payments or pay your property taxes, it may be a sign that it’s time to sell your home,” said Pavel Khaykin, founder and CEO of Pavel Buys Houses.
“This can be particularly true if you are also facing other financial challenges, such as job loss or unexpected expenses,” Khaykin added. “Keeping up with the financial responsibilities of homeownership can be overwhelming and may indicate that it’s time to consider selling.”
Ben Klesinger, co-founder and CEO of Reliant Insurance Group noted how “additional living expenses, especially if you’re not able to live in your home due to needed repairs from unexpected events, can compound financial stress, making it unsustainable long-term.”
Find Out: 9 Major US Cities Where Buying a Home Is Surprisingly Cheap
Commuting Costs Are Too High
Perhaps you bought your home because of the desirable location or maybe because it would not take you long to get to your job. That was the initial plan, but all plans change over time — especially when you are paying too much to get to work.
Khaykin noted, “… as job changes or other factors come into play, the cost of commuting may become too high. If you find that the cost of gas, tolls, or public transportation to get to work is eating into your budget, it may be time to sell and relocate closer to your job.”
Klesinger added, “If you’re finding that the commute to work or essential services is draining your finances more than expected, it could be a sign that relocation is a more practical and economic choice.”
Your Current Home No Longer Fits Your Needs
Life changes, and so do our needs. This is particularly true when it comes to our living situation.
“That large family home that was perfect when you had young children may now feel too big and empty as your kids have grown up and moved out,” remarked Khaykin.
“Your family may be expanding or just maturing, which could be a reason to sell your house,” Nicholas McMillan, founder and owner of Hire Realty LLC, posited. “A new bedroom can be necessary due to the impending arrival of a newborn. Perhaps your in-laws are moving in.”
“Alternatively, you may find that your current home no longer meets your physical needs as you age, such as needing a single-level layout or handicap accessibility,” Khaykin noted.
There Is Too Much Maintenance or Upkeep
Owning a home comes with regular maintenance tasks and expenses, most of which we can keep up with when we are younger because it takes energy and money.
“As we get older or our lifestyles change,” Khaykin pointed out, “it may become more challenging to keep up with these tasks.”
“If you find that maintaining your home has become too much work and is causing unnecessary stress, it may be a sign that it’s time to consider downsizing or selling,” suggested Khaykin.
There Is Equity in Your Home
Not all reasons for selling your home are negative. In fact, some can be a net plus, particularly if your home has gained value over the years and there is equity to tap into.
“If you have built up significant equity in your home over the years, it can be a good indicator that it’s time to sell,” offered Khaykin.
“This equity can provide you with a financial cushion to help with any moving expenses or serve as a down payment for a more suitable home in your current stage of life,” said Khaykin. “It may also be an excellent opportunity to invest in other areas or save for retirement.”
Change in Work Status
You could be retiring in the next year or so and on a fixed income. Or you could be offered a job in a different state that would require you to relocate. However you see your work status shifting, it might be time to sell your home to accommodate the next chapter in your career.
“Moving due to retiring or changing careers can be reliable signs that it’s time to sell your house,” McMillan said. “Selling your present home can give you financial security and an opportunity to begin in the next phase if you’re retiring or moving to a new city.”
The State of the Market Suggests It
Your home does not exist in a bubble. Rather, it is tied to the economy at large and a real estate market that can go up and down, depending on how the markets at large are trending. This can be valuable or detrimental news regarding your home, which you might start to consider selling.
“The real estate market dramatically influences the value of a home,” explained McMillan. “If you see a noticeable rise in property values or a strong seller’s market, it might be the right moment to sell.”
“If you’re in a seller’s market, with high demand but low inventory, you could ‘move up’ — that is, sell your home for a large profit and use it as a down payment on a new, larger house that better fits your needs,” highlighted Kevin Huffman, owner of Kriminil Trading
McMillan recommended “keeping an eye on market developments and speaking with a real estate professional can yield insightful information about the ideal moment.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 7 Ways Your Wallet Is Telling You It’s Time To Sell Your Dream Home
