Your first home – your starter home, which you scrimped and saved to buy – will always hold a special place in your heart. As with most things in life, though, there comes a time when you should move on and sell your starter home. But how do you know if that time is now? If you’ve been thinking about selling your starter home and upgrading, you need to read the signs – otherwise, you could be making a huge mistake. Here are 5 signs it is time to sell your starter home and look for a bigger home in Salt Lake.
1. Your and/or Your Family’s Needs Are Different
One sure sign that it’s to sell your starter home and look for a bigger home in Salt Lake when your needs change. Most often this means a growing family, but it could also be a change in financial circumstances or other lifestyle factors.
You would need to sell your starter home and look for a bigger home in Salt Lake if you found yourself in this situation: “You purchased a two-bedroom starter home five years ago when you were single and dating. Now you’re married and have two children. While you could technically have your three-year-old and newborn share a room, it feels a bit cramped. You’d rather have a third bedroom (and maybe even a fourth for guests).”
Or maybe you did have enough bedrooms for you and the kids, but now you and your spouse find yourselves working primarily from home. In this situation, you’ve likely had to convert a bedroom into a dedicated home office – so now you’re a bedroom short. The only good solution, then, may be to sell your home and upgrade to a larger one with more bedrooms.
2. You Can Actually Afford It
Another one of the top signs that it’s time to sell your starter home is when you can comfortably afford it. Maybe your income has increased substantially or perhaps you’ve gone from a single-income to a dual-income household. In either, case it might be a good move to sell and buy a bigger Salt Lake home. Doing so would be both reasonable and justified.
But do make sure that will be comfortable for your budget, not just an impulse move. You also need to factor in more than just the larger mortgage payments. Both property taxes and homeowners insurance (among other things) will go up. So be sure to consult your Salt Lake agent to find out about these costs as well as all the other expenses associate with an upgrade. To find out more, call (801) 755-3865.
3. The Home Has Appreciated or Needs Major Upgrades and/or Repairs
If your property has appreciated significantly, that’s often an indication that you should selly our starter home and look for a bigger home in Salt Lake. “There’s something to be said for selling while the getting is good. If you happened to buy in a really good neighborhood that’s appreciated significantly since your purchase, it may be smart to sell the home and capitalize on your good fortune. This equity can then be put into another home purchase.”
Or if your starter home is in need of major upgrades and/or repairs, it may be time to sell. If you’re looking at putting in a new HVAC unit or replacing the roof, selling may make the most financial sense. In this scenario, you’re likely better off selling than pumping tens of thousands of dollars into those upgrades and repairs.
4. You Want to Build Wealth
The fact that you’re ready to start building more wealth may be a sign that it’s time to sell. If you sell your starter home and buy a bigger home in Salt Lake, you can begin building wealth.
First, when you upgrade to a bigger and better home, you will be able to begin building equity in that more valuable home. In addition, as the home appreciates, your equity grows.
And if you can swing it, if your debt-to-income ratio allows, you might even keep your starter home and rent it out. This will provide you with another income stream to help you build wealth. Passive, recurring income is one of the top ways to build wealth.
5. The Market Conditions Are Favorable
Finally, you should sell your starter home when market conditions are favorable. Suppose, for example, that interest rates are low and the local market is hot. In that case, selling a starter home makes a lot of sense.
So, is it time to sell your starter home and look for a bigger home in Salt Lake? Only you can make that decision, but your Salt Lake real estate agent can provide a lot of valuable guidance. Your local agent will know exactly what’s going on in the local market, as well as the additional expenses and whether the new home will actually meet your needs. Don’t make a mistake – contact one of our experienced agents today. Send us a message or give us a call at (801) 755-3865.