While this topic may seem obvious, there are many reasons why people sell their homes and later regret it. Every real estate agent has a story about a sale that didn’t happen and why it ended up being the right decision for the people involved to not sell. Here are a few reasons that may occur:
Not Financially Prepared
If your plan is to downsize, the profit of the sale should cover the expenses. If you’re upgrading, you’re going to pay for these expenses out of pocket. You should make sure you have saved enough to cover everything before you decide to sell and move.
Home Loan Restrictions
If you’ve purchased your current home on a bank loan, you will have to follow through with some legalities like obtaining an NOC from the lending bank, and get the original title deed transferred to the new buyer. Do not attempt to sell your house without fulfilling the stipulations along with the tax liabilities. Other than that, if you sell your house within one year of purchasing it on a loan, you’re liable for paying (STCG) Tax which is the tax applicable on investments sold within one year (percentage may vary between 10-30%).
The Market Conditions
Depending on how the market is performing based on your location will help determine if it is the right time to sell for you. If it’s a buyer’s market, it will take longer for you to sell and it may not sell at the price you want. However if inventory is low, especially in your homes price range it would be a prime time for you to sell. Consult a real estate agent to help you understand your local market and determine if the market is favourable for you to sell.
Condition Of The Property
If you are wanting a certain price for your home and the property is in disrepair or requires some restorations, it may be productive to first do your upgrades before listing your home for sale.