In real estate, like in life, one of the toughest decisions we will face is when to move on. If you’re an elder Millennial or part of Generation X and still own your starter home, you’ve likely started to ask yourself, “is it time to move?”
Let’s take a look at the average time it takes other homeowners to move, the reasons why they do, and cost to do so.
Homeowners are staying in their homes longer. The average length of time in home used to be five years and has more than doubled to 10.8
Top reasons people move include:
- They need a larger home for a growing family
- Working remotely has changed what is needed from their home
- They want to avoid making repairs on current home
- They want better school districts for their children
Are you putting off the inevitable?
Here’s something to think about: if you’ve been in your home longer than 10 years, chances are you are putting off addressing one, if not several, of the reasons people move. You may be turning a blind eye to overdue repairs, or the fact that the schools in your area are not the best for your kids.
If so, ask yourself why. Are you struggling with questions like “where will I go next?” or “can I afford the move?”
If so, keep in mind that It’s often financially beneficial to sell your house and move. One of the biggest benefits of home ownership is the equity that your home builds over time.
The power of equity
Your equity can fuel a major upgrade when you sell your home and purchase a new one. Many homeowners I’ve worked with are surprised to find that if they use the proceeds from the sale as a major down payment their monthly note on a much bigger home is similar to the cramped home they are living in now.
Keep future mortgage low or buy cash and avoid a mortgage
Why? Because even if you buy at a price point much higher than you did for your starter home the chances are that you have a much bigger down payment this time around and therefore do not have to borrow as much from the bank so your payments remain reasonable.
If you’re looking to downsize, you might even be able to buy your next property with cash and avoid a mortgage payment altogether. This is especially true if you are selling in California and buying out of state.
Let’s chat! Book a time in link below and I can run these calculations for you free of charge and at no obligation.