The Most Common Reasons People Sell Their Houses.
Updated: Oct 24, 2019
Are you sitting on the fence about selling your house? You are not the only one. There are a lot of homeowners in the same situation. Although, their reasons might be different than yours it is important to take a closer look at your motivation and options before putting it on the market.
Why there are so many houses for sale and what are the most common reasons that push people to sale their house? Below, you will find the top reasons people put their house for sale in California.
They want a bigger house
This is especially true of first time home buyers. A lot of the times they will use that first purchased, starter home, as a way to build enough equity to use as a deposit for their dream home.
Getting a home loan that doesn’t work for them
Often times, high interest on a loan or high payments will cause for the owner to sell the house as a way to get rid of the financial burden. This can be because the owner was forced into selling due to a legal matter or because they don’t think is worth it.
Transferring or getting an new job
In with the new and out with the old, this phrase also applies to houses. Relocating because of work is probably one of the most common reasons why people sell their house.
Moving to a better neighborhood
Perhaps, they couldn’t afford buying a house in a better neighborhood or they didn’t need to before starting a family. A lot of times the reason people will place their house for sale will be based on whether the current location is the optimal place to live for the stage they are in their lives.
Is the crime rate in your neighborhood making you feel unsafe? Feeling unsafe is a big reasons for home owners to sale their house. Signs to look for are graffiti, vandalism; schools are in decline and abandoned shopping carts on the street.
The house was great to raise kids but now that they are all grown up and have a life of their own it’s time to get a smaller place. Also, you work hard but a long time but now you are retiring. It’s time to cash in on that equity and buy a smaller place that will let you save money and relax by the pool.
Moving close to your family
Wanting to be close to your family is a very common reason for putting a house for sale. Especially, if you are close to your family or is important for your kids to grow up close to their cousins.
The Area is to Expensive
Relocating further away from the downtown area even if the commute will be longer in order to get more for their buck is a reason a lot of people will put their house for sale. This is true of larger cities where location can affect significantly the size and price of a home.
Marriage or Moving in with your partner
You fell in love is time to take the relationship to the next step. In many cases, this means getting married and other time is just is moving in together. No matter what taking the next step means to you. One thing is for sure, you will have to sale your house to buy your new love nest.
Just like falling in love will cause people to put their house for sale. Breaking up or getting a divorce will have the same affect but it won’t feel as nice.
You need money to pay your bills, buy a new house, or just feel lucky and want to go to Vegas. Selling the house is a great way to cash out on all that equity.
Lost Your Job
Lost of employment or income is a very strong reason to put your house for sale. Reason for losing your job or loss of income can be cause by maternity leave, career change, or getting fired.
When you get behind on your payment because you can’t pay your mortgage the bank will start to process of getting the property back which is called Foreclosure. A lot of the times is possible to get current with the payments. Other times, is almost impossible so a lot of home owners will sell their house as a way to avoid losing it to the bank.
The House is too old
Living in an old house can become very expensive. The maintenance an old home requires can be as high as $25,000 depending on the repairs it needs. For instance, fixing or replacing the Air Conditioner central unit can go from $2,500 to $8,000.
Health problems can cause a lot of people to put that “For Sale” sign in front of their lawn. People with medical problems often need special living arrangement. These arrangements can mean that the house the currently have is not providing that or the city they live in might be a cause for their medical condition.
Inheriting a house sound like a great idea but in some cases it can be a nightmare. If you inherited an old house in need of a lot of repairs or a large mortgage payment that you can’t afford, putting for sale would be a great solution.
Outgrowing the house
You got married and are thinking about starting a family? This is also a reason to sale your house. Using the equity from your bachelor pad to buy a home more suited for a family is a great way to put a large deposit on dream house.
A lot of investors will buy houses and rent them as a way to wait until the market goes up so that the can sale that property for a profit. Also renting the property allows them to make passive income while waiting for the market.
You bought an old house and you are done with the repairs. Now, it’s time to put the house on the market and make a profit. This is something investors are known to do to make money but it's not unheard for regular folks to give it a try and test the waters.
You bought a house that needed some TLC and now you are done. You find that now living there is becoming too boring because there are no more projects left for you to do. Is it time to get another project?
At the end of the day, it doesn’t matter what the reason is for wanting to put your home for sale. Ultimately, what dictates the outcome is the approach you decide to take to achieve your goal. You have to remember that not all the house are created equal and not all the circumstances are the same so before agreeing to pay 6% commission from the sale of your home to a listing agent make sure you do your due diligence.