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\n <\/div>\n \n How Much Is Your Home Worth Now?<\/h3>\n
Home values have rapidly increased in recent years. How much is your current home worth now? Get a ballpark estimate from HomeLight’s free Home Value Estimator.<\/p>\n \n
1. How fast are homes selling in your neighborhood?<\/h2>\n
Checking the average time to sell a house<\/a> in your area is one way to gauge your market\u2019s temperature. A quick turnover can signal strong demand, potentially leading to a faster sale at a favorable price. You can check real estate websites or consult with a local agent to get an idea of average days on market<\/a> and recent sale prices.<\/p>\n You can also use online tools like HomeLight\u2019s Recently Sold Homes<\/a> pages. Use the map to navigate to any state or city. The software will automatically load listings marked as \u201cClosed\u201d and indicate the selling price. You can also view other homes for sale in your neighborhood. (As you navigate, pause to allow the site to load new markers.)<\/p>\n Keep in mind that an active market in your neighborhood doesn\u2019t necessarily mean you should rush into selling \u2014 your personal readiness matters just as much.<\/p>\n \u00bbLearn more:<\/strong> How Long Does It Take to Sell a House?<\/a><\/em><\/p>\n Determining why you’re moving is a key factor in the home-selling litmus test. Are you downsizing<\/a> to cut expenses, moving to a more convenient location for family or work<\/a>, or upgrading to a larger home<\/a>?<\/p>\n Each objective can shape your priorities and help you set realistic expectations for the sale. Understanding your motivation will also assist your agent in tailoring the home-selling process to your needs, whether it’s selling quickly or maximizing profit.<\/p>\n \u00bbLearn more: <\/strong>When to Downsize Your Home: 10 Signs It’s Time to Sell<\/a><\/em><\/p>\n When thinking of selling your home, an obvious goal is to make a profit. Selling your home at a profit starts with knowing your current equity<\/a>. This is directly connected to what you\u2019ll walk away with after covering your mortgage balance and other obligations tied to your home, including selling costs. If your equity has grown<\/a> substantially, it could be a great time to sell.<\/p>\n However, if your equity is slim, you might need to wait until your property\u2019s value increases, or at least have a clear plan for covering any financial gaps between your mortgage payoff and the sale price. To get a better profit snapshot, try HomeLight\u2019s Net Proceeds Calculator<\/a>.<\/p>\n The 5-year rule<\/a> is a general guideline many homeowners follow when deciding whether to sell their home. It suggests that you should live in a home for at least five years before selling to build enough equity and offset transaction costs, such as closing fees and real estate commissions. Thinking of selling your home before five years<\/a> might mean you\u2019ll break even or, worse, lose money on the sale, depending on market conditions and the initial costs of buying the home.<\/p>\n \u00bbLearn more:<\/strong> Proceeds vs Profit: How Much Will I Make Selling My House?<\/a><\/em><\/p>\n Even in a seller\u2019s market, buyers still expect homes to be in good shape. This means you\u2019ll likely need to invest both time and money into cleaning, repairs, and even staging<\/a>.<\/p>\n Be realistic about your ability to prepare the home for sale \u2014 can you afford the upfront costs of getting the property market-ready? If not, some home-selling strategies allow for lower upfront investment, but they might also lower your final profit margin. Understanding the We Buy Houses pros and cons<\/a> can help you decide if selling your home as-is<\/a> to one of these companies is your best option.<\/p>\n If you\u2019ve run the numbers and you know you don\u2019t have the money needed for repairs and upgrades, HomeLight\u2019s Simple Sale platform<\/a> can connect you with the nation\u2019s largest network of cash buyers looking to purchase homes as-is. Answer a few questions<\/a> about your home and selling timeline, and you\u2019ll receive a no-obligation all-cash offer in 24 hours. If the offer works for your situation, you can close in as little as 10 days.<\/p>\n \u00bbLearn more:<\/strong> How Much Work To Do Before Selling a House: 3 Levels of Prep<\/a><\/em><\/p>\n As you make plans to sell and move, it\u2019s important to check if you\u2019ll qualify for a new mortgage to purchase your next home. While you may have qualified with your original home loan, lenders will look at your current debt-to-income<\/a> (DTI) ratio to determine if you can handle additional debt. This ratio compares your monthly debt payments to your income, and most lenders prefer a DTI of 43% or lower<\/a> for mortgage approval.<\/p>\n If your DTI is too high, you might need to pay down some debts or increase your income before applying for a new loan. Getting pre-approved<\/a> for your next mortgage before selling can help you plan ahead and avoid surprises or delays. You\u2019ll also want to monitor your credit score<\/a>.<\/p>\n To get a better idea of how much of a new home you can afford and to make budgeting plans, try HomeLight\u2019s Home Affordability Calculator<\/a>.<\/p>\n \u00bbLearn more:<\/strong> Pre Approval vs Pre Qualified vs Underwritten Pre Approval<\/a><\/em><\/p>\n Selling your home will likely give you some cash to put toward your next property, but you\u2019ll want to get a clear picture of how much down payment<\/a> you\u2019ll need. According to the National Association of Realtors (NAR), the typical down payment for repeat buyers last year was 19%<\/a>. Using a median home price of $420,000, 19% would be $79,800. However, NAR reports the overall median down payment last year was 15%<\/a>, and a typical down payment for first-time buyers was only about 8%.<\/p>\n Keep in mind that a larger down payment can mean lower monthly payments and less interest paid over time. If you don\u2019t have enough, you might need to adjust your home-buying budget or explore programs that offer down payment assistance<\/a>.<\/p>\n You can estimate how much you should put down on a home and review your loan options by using HomeLight\u2019s Down Payment Calculator<\/a>. You can also try our Closing Costs Calculator<\/a> so you know what other selling expenses you\u2019ll need to plan for.<\/p>\n \u00bbLearn more:<\/strong> What’s A ‘Typical’ Down Payment on a House?<\/a><\/em><\/p>\n Moving costs can sneak up on you, and they can add up quickly. According to moving.com, for a 2-3 bedroom house, the average cost of a local move is $1,250<\/a>. The average cost of a long-distance move<\/a> is $4,890.<\/p>\n You\u2019ll need to consider costs like professional movers, rental trucks, temporary housing, storage fees, or overlap in rent or mortgage payments. A moving cost calculator<\/a> can help you plan ahead and budget for these expenses.<\/p>\n Depending on your situation, you may choose to sell many of your household items before you move.<\/p>\n \u00bbLearn more:<\/strong> How to Sell Everything in Your House Before You Move<\/a><\/em><\/p>\n One of the biggest challenges when thinking of selling your home can be timing \u2014 the need to buy a new house before selling your current one so you know you have a place to live. Most people in your position need the equity and sale proceeds from their current home to make a move. One solution is the modern Buy Before You Sell program<\/a>.<\/p>\n HomeLight\u2019s Buy Before You Sell<\/a> program offers the peace of mind of knowing you won\u2019t be without a home and you\u2019ll only need to move once.<\/p>\n This modern solution unlocks the equity in your current home to streamline and simplify the entire buy-sell process. You can make a stronger, non-contingent offer<\/a> on your new home and only move once. Watch the short video below to learn more.<\/p>\n2. Are you moving for size, location, or costs?<\/h2>\n
3. Do you have profit-level home equity?<\/h2>\n
What is the 5-year rule?<\/h3>\n
4. Can you afford to prepare your home for sale?<\/h2>\n
Thinking of selling your home but no money for repairs?<\/h3>\n
5. Will your debt-to-income ratio permit a new loan?<\/h2>\n
6. Do you have a down payment for your next home?<\/h2>\n
7. Can you afford the cost of moving?<\/h2>\n
8. Should you buy before you sell?<\/h2>\n
How does HomeLight Buy Before You Sell work?<\/h3>\n