3 Signs You Shouldn't Sell Your Home in 2024
Thinking of selling your home this year? Read on to see why you may want to wait.
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In December, existing home sale prices were up 4.4% from a year prior, according to the National Association of Realtors. If you've been on the fence about selling your home, you may decide to do so now, while prices are still high and inventory is generally low. After all, when there's less competition on the market, your chances of snagging a more favorable sale price are higher.
But while you may be eager to sell your home this year to take advantage of market conditions, that's not necessarily the best bet. And you may want to hold off if these signs apply to you.
1. You're not sure what your next career move entails
If you've been unhappy at work for quite some time, you may be in the process of plotting a career change. But until you make a firm decision, it could pay to sit tight and hang onto your current home.
Maybe you'll be offered a job that sounds great but comes with a lower salary than expected. You may be willing to take a pay cut for a better opportunity. But if so, then it's probably not the best time to move. A new home could mean added expenses your new paycheck can't cover.
2. Your home needs a lot of work and you can't afford to make repairs
Even though home prices are generally up right now, if you want to get a decent offer on your home, you need to present it in the best possible light. But if your home clearly needs work and you don't have the money to make repairs, then you're probably better off waiting. Sometimes, even a simple cosmetic issue could spell the difference between getting your asking price versus having to settle for much less.
One thing you should know is that you may be able to borrow against the equity you have in your home to make repairs. But then, you're looking at a loan you'll have to pay off. And these days, interest rates on loans are high on the heels of the Federal Reserve's interest rate hikes. So while the option to borrow might exist, it's not necessarily the best time to do so.
3. Your credit is poor
Your credit score doesn't matter in the context of selling your current home. Potential buyers aren't going to run a credit check on you. But if you'll need a mortgage to finance your next home, then poor credit could be a pretty big problem.
Mortgage lenders usually require a minimum credit score of 620 to qualify for a conventional home loan. If your score doesn't meet that threshold, you may want to work on boosting it before selling your home and putting yourself in a position where you need a mortgage to buy a new one.
While your score might improve enough in 2024 to qualify for a home loan, that's not something you can bank on. Boosting a credit score can take time, especially if you're doing so by trying to establish a stronger payment history and paying down existing debts. So if you're not currently in a position to get a mortgage, you may, unfortunately, be in the same boat by the end of the year.
You might think that now's a great time to sell your home. It's true that home prices are up, inventory is down, and mortgage rates are high. But while you might walk away with a nice price for your current home, you might end up struggling to find a new one that's affordable. As such, if you realize that 2024 is not a great year to sell your home, it may be for the best.
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