A Volatile Housing Market...
In a tough economy and volatile real estate market, people often wonder why home sellers sell their homes. Why would they give up a beautiful home, likely with a lower mortgage payment and interest rate, to move elsewhere?
“What’s wrong with the home?”
Generally, this is just a potential home buyer letting their imagination run a bit wild.
It’s true, sometimes a home sale is due to financial hardships, or maybe an unscrupulous home seller trying to cover up a major problem with the home (which is why we always hire an inspector). But way more often than not, it’s simple and common life changes.
People still sell, whether it's a good or a volatile housing market. Commonly, the motivations for home sellers to sell really doesn’t change all that much whether the housing market is “good or bad” or “up or down.”
It’s also true, when interest rates were very low and home prices were rapidly rising, there were more vanity home sellers looking to “trade up” their home, just because they could. But in the end, most reasons fall within the same few categories, regardless of market conditions.
As recently highlighted by Realtor.com:
“No matter what interest rates and home prices do next, sometimes homeowners just have to move—due to a new job, new baby, divorce, death, or some other major life change.”
Here are 5 common reasons people sell their home:
Relocation
There are a few things that might motivate a move to a new area—changing jobs, wanting to be closer to friends or family, or just seeking a change of scenery. Relocating can be a powerful motivator to sell a home.
Example: You just landed your dream job in another state, so it's very possible you’ll need to sell your current home and move for work.
Upgrading
The need for more space—whether for entertaining, a home office, or growing family—often pushes homeowners to transition from a smaller dwelling to something more spacious.
Example: You currently live in a townhome and your household is growing. Now may be the time to find a home that better fits those needs.
Downsizing
Life changes such as retirement or an empty nest can drive the decision to move to a smaller, more manageable property.
Example: You’re about to retire and you want to move somewhere warmer with less house to maintain. A different type of home may be better suited for your new lifestyle.
Change in Relationship Status
Events such as a divorce or marriage can necessitate a new living arrangement, prompting the sale of a home.
Example: You’re recently separated and neither party can afford to keep the current home on their own. Selling may be necessary for everyone to move on.
Health Concerns
For those facing health challenges or mobility issues, finding a more suitable living environment can be a crucial reason for selling.
Example: You may be looking to sell your home and use the proceeds to help pay for a unit in an assisted-living facility.
Bottom Line
As Bankrate puts it:
“Deciding whether it’s the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation . . .”
As a home seller, focus on what makes sense for you now and in the future. Sometimes the right time and perfect time are two different things.
As a home buyer, don’t focus on why a seller is selling but on whether the home they’re offering is the right one for you.
As always, reach out with any questions you may have. Let’s discuss your goals and how we can help you accomplish them—now or in the future.
–Ryan
Call/Text: 843-469-6825
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