Sellers: This is your time. If you’re already a homeowner, your home is likely a lot more valuable now than it was a year ago. Median home prices increased 14% in the past 12 months, according to Redfin data, with high-end single-family homes in great demand.
But before homeowners break out moving boxes and grab the “for sale” sign expecting a big payday, here are some things to keep in mind.
You just refinanced your mortgage. Should you sell?
You may want to wait. Many people refinanced their mortgages in the last 12 months to capitalize on superlow rates. Just know that it often takes a year or more to recover the costs associated with refinancing.
“When someone is refinancing, they should go through the thought experiment of: ‘Can I stay in this house long enough to make it worth it?’” said Mike Fratatoni, chief economist of the Mortgage Bankers Association.
Consider how the potential profit on your current home could offset the refinancing costs and the savings you stand to get from the new loan terms. Follow up with your mortgage lender to talk over the terms you agreed upon when refinancing. They may be able to help you talk through potential pitfalls.
