Prioritize Your Needs: Unveiling the True Value of Your Home in Los Angeles and Beverly Hills, CA, Beyond Today’s Mortgage Rates
Prioritize Your Needs: Unveiling the True Value of Your Home in Los Angeles and Beverly Hills, CA, Beyond Today's Mortgage Rates |
Christophe Choo at Coldwell Banker Global Luxury is Your Local Real Estate Expert
If you're contemplating selling your house, chances are there has been a significant change in your life. While factors like mortgage rates play a crucial role in determining your future purchase, it is important not to lose sight of the underlying reason behind your decision to make a change.
It is true that mortgage rates have risen from the historically low levels we witnessed in recent years, impacting affordability. Given the current rates, some homeowners are choosing to postpone selling because they are hesitant to move and acquire a higher mortgage rate for their next home. As Danielle Hale, Chief Economist at Realtor.com, explains:
". . . homeowners who secured a 30-year fixed rate in the 2-3% range are not necessarily inclined to relinquish that advantage in exchange for a rate in the 6-7% range."
However, it is essential to prioritize your changing lifestyle and needs. Here are a few common reasons why people opt to sell their homes today, which may hold more significance than maintaining the current mortgage rate.
As Ali Wolf, Chief Economist at Zonda, mentions in a recent tweet:
"First-time and move-up buyers are both active . . . the latter driven by life changes. Divorce, marriage, new higher paid job, and existing home unsuitable all referenced."
Relocation: There are various reasons that can prompt a move to a new area, such as changing jobs, the desire to be closer to friends and family, the aspiration to live in a dream location, or simply seeking a change in scenery.
For instance, if you currently reside in the suburbs and have just secured your dream job in the bustling city of Los Angeles or Beverly Hills, you may be contemplating selling your current home and relocating to the city for work.
Upgrading: Many homeowners decide to sell their homes in order to move into larger residences. This is particularly common when there is a need for additional space to entertain guests, establish a home office or gym, or accommodate a growing number of family members.
For example, if you are currently living in a condominium and feel the need for more space, or if your household is expanding, it may be time to find a new home that better suits your requirements.
Downsizing: In the face of rising everyday expenses due to inflation, homeowners may choose to sell their properties to reduce maintenance and costs. Alternatively, they may sell because someone has recently moved out, leaving behind more space than necessary. It could also be that they have recently retired or are seeking a change.
For example, you may have just embarked on your retirement and desire a new location with warmer weather and fewer house-related responsibilities. Your new lifestyle may be better suited for a different type of home.
Change in Relationship Status: Divorce, separation, or marriage are common factors that lead individuals to sell their homes and seek new living arrangements.
For instance, if you have recently separated, it may be challenging to continue residing under the same roof. Selling the property and downsizing may be more suitable options.
Health Concerns: Homeowners facing mobility challenges or health issues that require specific living arrangements or modifications might decide to sell their current homes in search of a more suitable living environment.
For example, you might be considering selling your home and using the proceeds to help finance a unit in an assisted-living facility, where your specific needs can be met.
While higher mortgage rates present certain affordability challenges at present, it is crucial to remember that your needs and lifestyle also matter. As highlighted in a recent article from Bankrate:
"Deciding whether it's the right time to sell your home is a very personal decision. There are numerous important questions to consider, both financial and lifestyle-based, before putting your home on the market. . . . Your future plans and goals should be a significant part of the equation."
Bottom Line: If you are ready to sell your house and make a move, it's advisable to connect with a real estate expert who can guide you through the process and assist you in finding a home that aligns with your aspirations. Particularly in vibrant locations like Los Angeles and Beverly Hills, where the real estate market can be competitive, having an experienced professional by your side can make all the difference.