How much is my house worth?​

Real estate experts have speculated that home prices and the demand for houses will continue to increase in early 2022, albeit at a slower rate than we saw in 2021. Low mortgage rates and limited inventory continue to make the market conditions very competitive for buyers. In other words, we are still in the midst of a seller’s market. That means finding your next home may be somewhat difficult. To figure out what the best choice is for you, you’ll need to weigh the pros and cons of each option.

You have three main choices:

1. List your home for sale
2. Hold off on listing your home until the market balances out
3. Stay in your home for the foreseeable future

The course of action you take will depend largely on your reasons for moving. If you need to relocate quickly for work, family or other personal reasons, you might come to a different decision than a seller who just wants to downsize to a smaller home. To help you decide whether it would be a good idea to sell and take advantage of high sale prices right now or wait until it will be easier to buy another house, you should be sure to do your own research on your local market.

If you’re still unsure how to decide when the right time to sell is, here are a few points to consider that may help you reach an answer.

If Interest Rates Are Low

If mortgage interest rates are low, it might be a good time to sell your home and find a new one. Lower interest rates means you pay less in interest – or, in other words, save more money financing your new house.

Low rates can also be a double-edged sword for homeowners, though. They often create a lot of demand, since buyers will be looking to take advantage of low rates.

This means that you can potentially sell your home at a great profit, but you may struggle to find and purchase a new home after that due to high demand. If you’re not worried about buying and selling a house at the same time, though, a period with low rates is a great time to sell your house.

If The Supply Is Low

In a buyer’s market versus a seller’s market, there are more houses on the market than there are people to purchase them, meaning the home buyer has more negotiating power when house hunting. In a seller’s market, on the other hand, there are less houses for sale and more buyers looking to find a home. In this situation, the seller has more negotiating power at the closing table – which makes a seller’s market a great time to sell your house.

If home buyers are competing for a smaller number of homes, the seller can often set a higher competitive asking price and compromise less on contingencies and other negotiated terms when finding a buyer for the house.

2022 is still a seller’s market if you’re looking to take advantage – but it’s important to note that the market is not as competitive as it was in 2021. You may have heard stories about sellers able to find buyers to take their home as-is, or in some cases, even without an inspection in 2021. These sorts of sales are expected to become less common this year as the market cools down ever so slightly.

If You Need To Relocate 

If you need to move, you should also consider selling your house. If you’re in the market to buy a second house while keeping and maintaining your current one during the move, this may not apply to you – but in many cases, when homeowners move for a job or other urgent reasons, they may sell their current home and buy a new one.

There are plenty of reasons you may need to relocate, including moving for a new job, downsizing to a smaller home, buying a larger home to accommodate a growing family, etc. If there’s a strong personal reason for you to sell your current home to purchase a new one elsewhere, you should definitely consider it, especially if that reason is time sensitive.

If Your Home’s Value Has Increased  

One great bonus of a strong seller’s market is that your home’s value may have increased with demand. If your home is appraised for a higher value than it held previously, you may want to consider cashing in on your home’s equity by selling. Depending on how much your home has increased in value and how much equity you’ve built in the home, you could stand to make a significant profit by selling while homes are still in demand.

If you’re not ready to sell but still want to take advantage of your home’s increase in value, you could always explore other options. If you want to stay and improve your home, a cash-out refinance may be a better option for you than selling and could still leave you with money in your pocket.