How Long Should You Live in a Home Before Selling?*

It can be tough trying to decide whether or not it’s a good time to sell your house, especially if you already know your current home isn’t one you plan to stay in forever. According to the National Association of Realtors, the average person lives around nine years in their home before putting it on the market. Of course, that doesn’t mean that you necessarily have to wait that long.

These clues can help you decide how long you should live in your home and whether now is the right time to sell.

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You’ve Been in Your House At Least 5 Years

If you’re getting that itch to move again, you might want to resist that urge if you haven’t spent enough time there to have built a good relationship with your mortgage lender. Most advise following the rule of thumb by staying in your home for at least five years so that you can build equity while showing you can make all your payments on time. Keep in mind that just because you can sell your house right now, it still may not be the smartest move unless it’s a booming seller’s market or it’s something you must do because of a new job or other personal reasons. Getting a house in the show-ready condition usually requires money, and you wouldn’t want to lose any in the process. In fact, even the cost of selling a house can sometimes outweigh the benefits of doing so.

You Want to Take Advantage of a Seller’s Market

During a booming seller’s market, you’re likely to be tempted by the opportunity to get the maximum dollars out of your home, and it makes sense. As the price per square footage increases and the inventory of houses for sale decreases, it may be the sign you needed, meaning it’s time to strike when the iron is hot. Unless you’re really invested in your home and plan to be there over the long term, watching the real estate market can provide a big clue as to whether it’s time to move on to a new place.

The Neighbors Just Sold Their House Over the Asking Price

Keep track of the recently sold homes right in your area, as it can provide you with clues as to how hot your neighborhood is in the real estate market. If you start to notice that homes are going for the asking price or higher, it’s definitely a good time to sell your property, assuming you’ve been thinking about it anyway.

You’ve Outgrown Your House

Many starter homes are purchased when single people or newlyweds are searching for their first house. Of course, after time, those life situations can change, with couples having children and singles getting wed. Or, perhaps other family members like parents move in and the house is no longer big enough for everyone to live comfortably. If you’re walking around the house and constantly bumping into everyone, that’s a pretty big sign that it’s time to move on unless you think you’ll lose a lot of money by selling.