With mortgage rates at historic lows and the rise of remote work, many families are contemplating a move. Here are some factors to consider if you're thinking about selling your home now or deciding to stay.

In a seller's market, you might be tempted to cash in on high home values and upgrade to a property with more space. The pandemic has increased the appeal of expansive outdoor areas, and if you're working remotely, you might be looking at more affordable homes farther from your office.

However, staying in your current home could also be a viable option given the current uncertainties. There are valid reasons why 2021 might not be the ideal time to sell, so it's important to weigh your choices carefully.

Consider these reasons for and against selling your house in 2021 to better evaluate your own situation.

3 Reasons to Consider Selling Your Home

1. You Anticipate Significant Profit
If you own a starter home in a desirable area, you might be in a prime position to make a substantial profit. The surge in millennial homebuyers has increased demand for well-priced entry-level homes, which can result in offers above your asking price. Even if your home isn't a starter home, selling in a high-demand area with limited inventory could still yield a profitable return. For instance, in Austin, Texas, home values have risen 15% from the previous year, making it a potentially lucrative time to sell if you're looking to capitalize on high market values.

2. You Can Upgrade for Less
Despite potential slight increases in mortgage rates this year, they are expected to remain relatively low. This situation might allow you to upgrade to a larger or more desirable home while keeping your monthly payments manageable. Additionally, if your employer has adopted long-term remote work options, you could consider moving to a more affordable area farther from the office. If you can get more space or better features for a lower cost, selling now might be advantageous. Just be sure to account for the costs associated with preparing your home for sale and closing expenses.

3. You Need to Relocate for Work or Family
Moving can be challenging and stressful, but sometimes it's necessary. You might need to relocate to be closer to family for childcare support or due to changes in your job situation. While remote work is more common, some positions still require office presence, or economic changes might necessitate a career shift. If you've received a new job offer or a transfer, you may have to move. Regardless of your reasons, ensure you explore mortgage options to be financially ready for purchasing a new home.

3 Reasons to Consider Keeping Your Home

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1. Your Home Needs Repairs and You Can Use a HELOC to Upgrade
Buyers generally prefer homes that are move-in ready. If your home is in poor condition, it may linger on the market and not fetch the price you want. However, with current low mortgage rates, you can also obtain a home equity loan or home equity line of credit (HELOC) at favorable rates. This financing can be used for home improvements that could enhance your home's value beyond the cost of the upgrades. For example, replacing a garage door or remodeling a kitchen can significantly increase your return on investment.

If you're unsure about securing a loan for renovations, it's quite accessible. Online lenders can provide quick funding. For instance, Figure offers HELOCs with funding potentially available in as few as five days and at competitive rates.

2. You've Already Refinanced at a Great Rate
If you refinanced your mortgage last year and secured a low interest rate, you might not benefit from refinancing again. Unless you have other reasons to move, it may be wise to wait until more properties are available and you face less competition. With interest rates expected to remain low, there's no need to rush into selling, especially if you're already benefiting from a favorable mortgage rate.

3. Your Income Is Unstable
Many people experienced job loss or income reduction due to the pandemic, making financial stability a concern. Although downsizing might seem like a good way to alleviate financial stress, the process of selling a home involves various expenses, including repairs, marketing, and closing costs. If your income is unreliable, it might be better to tap into your home's equity rather than selling, especially if you don't anticipate making a significant profit.

Bottom Line

If moving or capitalizing on the sale of your home is a priority, 2021 might be an opportune time. However, carefully consider your financial situation, the local real estate market, and your home's condition before making a decision.