Agents say low interest rates and a tightening inventory make now a great time to get into the housing market. But if you already own a home and are thinking it may be time to sell , there are considerations.
1. Have you built substantial equity? Generally you don’t build much equity in the first couple of years, when monthly payments go mostly toward interest.
2. Has your financial situation improved? If you’re making more money, you might be able to afford a bigger mortgage payment.
3. Can you remodel or add on? Adding a room or another story is one way to expand your home to meet your needs, but you need to consider the size of your lot and building codes.
4. Have you outgrown your neighborhood? Consider if the neighborhood you’re in is where you want to settle long-term.
5. How strong is the local market? The hotter the market, the better chance you have of selling your home for a good price. On the flip side, you’ll be paying more for your new house. Markets can vary by size and price point, so consult an agent on the latest conditions.
6. Are interest rates attractive? The lower the rate, the more affordable your new home will be, and the easier it will be to find a buyer.
Source: Realtors, National Association of Realtors