Deciding on the right time to sell your home is tough. Right now in Southern California, we’re experiencing a seller’s market with tight inventory and rising prices, so for most homeowners, it’s a financially opportune time to sell for top dollar in order to afford their dream home. However, according to statistics from the National Association of Realtors®, cashing out big and making a profit didn’t make the list for primary reasons to sell a home in their 2020 Profile of Buyers and Sellers.
So what pushes most homeowners to decide to sell? Turns out it has more to do with life changes than financial gain. And it certainly is a great time to review all of life’s changes. Let’s break down the top 5 reasons for selling together:
1. Want to move closer to friends or family (16%)
Across all age groups of sellers, the number 1 reason for a move was a motivation to be closer to loved ones. Sellers 74-94 years old were actually the most likely to claim this reason for their move (33%). Although it’s possible to stay connected via social media and video calls, nothing beats having your friends and family over for an impromptu game night or backyard barbecue.
2. Home is too small (13%)
As families grow, it is only natural to search for more space. The report also shows that the average seller swapped a 1,900 square foot home for 2,060 square feet. Since coronavirus, we’re guessing even more homeowners are feeling like their home may be too small. With more people than ever working from home and spending the majority of their lives inside, space is crucial. Conversely, a home being too large accounted for 9% of why homeowners sell, primarily being sellers 74-94 years old.
3. Job relocation (11%)
It will be interesting to see if this reason for selling changes over the next year as so many people have begun working remotely. However, we could be seeing a large number of individuals finally moving to where they truly want to live – uninhibited by the physical location of their jobs. For example, a recent flash survey asked if employees would consider moving to a new home if they were allowed to permanently work remote work—and more than 36% said yes.
That number increases 55% when asked if they would move if they currently lived in an expensive market and could go all remote. The affordability of a particular real estate market made a big difference in responses.
4. The neighborhood has become less desirable (10%)
Onward and upward! Outgrowing a home can mean the physical house itself, as well as the neighborhood. Whether you’re looking for better amenities, walkable shops, and restaurants, better schools, or a tighter community feel, a new neighborhood can be life-changing. And with the real estate market rebounding from COVID-19, this could be the perfect time to sell and upgrade to a home that finally fits your desired lifestyle.
5. Change in family situation (10%)
This reason covered anything from marriage and divorce to the birth of a child. When life throws changes your way, we all must adapt. Sellers aged 22-39 years old were the most likely to cite these reasons for selling (36%).
Are you ready to sell your home?
It’s important to review the market, as well as your personal situation when re-evaluating your home and real estate goals. Financially, in our Southern California real estate market, it makes sense for most homeowners with equity to sell so they can purchase their dream home for less with today’s record-low mortgage rates.
If you need help reviewing your options and understanding today’s real estate market, chat with a First Team Real Estate agent near you for a free consultation. When was the last time you reassessed your assets and considered if it’s the right time to sell your house?