Wednesday, Feb 2
Should I Stay or Should I Go?
One of the more common questions I am getting from folks nowadays is should I stay or should I go? In other words, now seems like a really good time to sell my house, should we sell? There’s a lot to unpack here and the answer may not be as easy as it seems, so I’ll address some of the things you should consider.
The first thing to ask yourself is why are you considering moving.
If you are wanting to move just because your house is at an all-time value, that may not be the best reason. Sure you could probably sell your house very quickly and it’s possible you’ll get several offers. It’s also likely you may get more than your asking price, so you’ll have more in your pocket for your new house. In my opinion, just selling your house because you can get more for it is not a great reason to sell. There needs to be another reason.
Is it time to downsize?
It seems that the older we get, the more stuff we accumulate. In order to have a place to put all that stuff, so many of us have lived in houses that are 2 or 3 times bigger than what we grew up in. At some point, many folks figure out that they need less stuff, and less house. And let’s face it, stairs become a liability as we get older. Falling down your stairs in your 40’s isn’t fun. Falling down your stairs in your 70’s can have devastating consequences. This makes getting out of a 2 story house and into a 1 story house an attractive option. It’s why we are building a one story house!
You’ll pay more for your new house.
Yes, you’ll make more on the sale of your house, but the seller of the house you are buying has the same thought that you do, so you’ll likely overpay for the house you buy. If this happens, the extra you made on your house will go into the pocket of the seller of your new house, so you may not actually realize that gain. As long as inventory stays low, it will continue to be a sellers’ market.
Are you following kids or grandkids?
I love the idea of you moving to be near your kids and grandkids. People want to see their grandkids grow up! I’ve seen several folks do this over the years and it’s worked out well. However, I have seen a few instances that it didn’t go as planned. In two of these cases, since they were retired, they moved to a different city to be near their kids and grandkids. They bought a house and settled in their new home. Within 2 years, a job transfer sent the kid and grandkids moving out of state. This is a risk you take if you buy a house where your kids live. People change jobs more than ever nowadays so this is a real consideration. You could consider renting where your kids move to until you feel certain the new job is going to work out. This gives you more flexibility to move again if their situation changes.
Interest Rates
I have talked with a few folks who are rushing to sell and buy a new house because they are trying to get a new loan in place before interest rates go up. Yes, interest rates are probably going up. However we have to keep perspective on things. We’ve been spoiled by interest rates in the mid 2’s to 3’s. Even if it goes to 5 or 6%, it’s still cheap when you look back at historical rates.
Destination Move?
Are you moving to a dream location? I love people making the decision to move the a lake, the mountains or a beach. I’ve had several people do this over the last few years and none have regretted the decision. My advice here is to do your homework. Make sure you know the location well before you buy a place.
I’ve also had at least 4 client families move to an “all inclusive” or “active” retirement communities. I absolutely love this idea. I’ve visited one of these before and it reminded me of college. Any social or sporting activity you can think of is available almost every day. The clients I have who have made this transition are having a blast. This is very appealing to me, but Pam has zero interest in it.
No matter what you choose to do, there’s no need to rush into anything. Take your time, consult with your spouse, your friends, and your close family.
If I can help you talk through the pros and cons, please call me
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