When does a homeowner consider selling? From money problems to the need to downsize, the reasons vary by owner. Here are ten common reasons an owner takes to the market.
1. Risk of Foreclosure. This is listed as number one because around one-third of all sales in today’s current market are distressed properties. Many homeowners find themselves in mortgages they cannot afford, whether due to job loss or to rising monthly payments. It is far better for their credit score to sell or short sale before they are foreclosed upon.
2. Job Loss. This goes hand in hand with number one. If you have lost your job, but are still not behind on your payments, now could be a good time to take a pre-emptive strike to avoid foreclosure.
3. Relocation. Sometimes it’s necessary to follow a job or to move for a better job. These homeowners, including members of the military, sometimes find themselves needing to sell in a hurry.
4. Healthy Seller’s Market. You won’t find this trend in most of the nation. In fact, most areas of the nation are still experiencing lukewarm sales and depressed home values. There are, however, spots that are hot beds of activity. These homeowners may wish to sell to make a profit or to avoid the risk of attempting to sell later in a down market.
5. Downsizing. Baby Boomers are now entering retirement. As they are faced with empty nests and changes of pace, many will decide to sell in order to downsize to smaller, more manageable homes.
6. Dream House. It is a great time to buy. Home values are affordable and interest rates are at historic lows. If a homeowner has a solid amount of equity in their current home, it may be a good time to sell and move up to their dream home.
7. Changing Locations. A downtown loft may have been a perfect choice for a young bachelor, but as a family evolves and children enter the story, a move may be needed to get to the best school district.
8. Need Money. Your home can be one of your biggest assets. If you are in need of some liquid money, selling can free up cash.
9. Investors. There are investors that may sell to avoid taking further losses on already depreciated values. They may also sell flipped houses in order to make a quick profit.
10. Family Needs. Sometimes a move is necessary in order to deal with family matters. An ailing parent or grandchildren in need may prompt a move.