| Mar 31, 2015
If you’ve lived in a home for a while, odds are you’ll have begun to notice minor discrepancies spring up here and there—leaky faucets, cracked window sills, tricky garage doors, the list most likely goes on. Most of these problems can no doubt be fixed with a bit of home improvement prowess, but over time, you may begin to notice the problems become more complicated, along with the frequency of them seeming to ramp up exponentially.
While holding onto a home maintains the notion of being a responsible, savvy decision for those wishing to build substantial net worth, it can be equally wise to keep in mind the possibility of moving on and cashing out when it’s prudent to do so.
The following guide aims to provide a handful of tips on knowing when it may be the right time to sell while your home value is high, move on to greener pastures, and more.
The most relevant risk to your home’s overall value may also be the most obvious at a glance—given enough time, a home will begin to depreciate in value, even with an appropriate amount of maintenance.
Once an aging home has reached a certain point, there’s a realistic chance that the number of problems will exceed your ability to reasonably maintain them, and you’ll begin losing your home’s overall net worth. In turn, you’ll have less potential for liquidating your home’s value as leverage in the future.
In addition to your home itself, the surrounding area will play a significant role in your home’s value as well. It’s no mystery that neighborhoods go through their own share of ebbs and flows—patterns of renovation and improvement are just as common as a once-good neighborhood depreciating in value over time –this can often mean that the resale value of your home suffers along with it.
It will be important to keep up to date with the neighborhood and surrounding area of your home, making sure to consider factors of everything from local school quality to increases in crime. If your neighborhood appears to be on a steady decline, selling your home will hold a much better payoff sooner rather than later.
New and Old Needs
Over time, the type of living arrangement that will be best for you will most certainly change—it’s important to remember that there’s no “end game” in sight when it comes to home ownership, and the type of home that is best for you will continue to change for as long as you continue being around.
While many who’ve recently started a family find themselves in need of a much larger, more spacious property, you may be surprised to find in later years that you’ll miss having a smaller space with less to maintain—this is increasingly common with people who have adult kids, or even those that have simply reached an age where they want to simplify or live somewhere more casual.