3 Reasons to Sell Your House

If you are considering selling your house, there are many different factors that you will want to evaluate first. Here are a few reasons that you might want to consider selling your house.

1. Capture Equity

If you have been in your house for a number of years, you may want to consider selling it so that you can capture equity. When you sell your house after living in it for at least five years, you are going to be able to keep all of the profit from the house without paying any capital gains taxes. This means that if your house increases in value by $100,000 over the course of two years, you will be able to sell the house and keep the entire amount without paying any taxes on it.

Many people simply refinance or take out a home-equity loan in order to gain access to the equity in their homes. However, you have to pay that money back and pay interest on the loan. By selling your house, you are going to be able to use the money anyway that you want. Many people do this so that they can have a significant amount of cash to make a down payment on another home immediately afterwards. You can also utilize a 1031 exchange to purchase another home and save even more with taxes.

2. Lower Payment

Many people want to sell their homes because they can no longer afford the high mortgage payment. By selling your house, you will be able to get out of your mortgage payment and potentially get a lower one. You can use the money from your house to make a down payment on a smaller property that is going to provide you with a smaller mortgage payment also. By getting a lower mortgage payment, you will be able to have a lot more flexibility in your monthly budget and do more things with your income.

3. Avoid Foreclosure

During tough economic times, the number of foreclosures increases significantly. Many people can no longer afford to make the payments on their homes and they start to fall behind. When this happens, you are going to be faced with the possibility of going through foreclosure. If you are close to foreclosure, you should consider trying to sell your house so that you can avoid this process.

A foreclosure can completely devastate your credit and make it impossible for you to buy a house for many years. Whenever you get a foreclosure on your record, it is not going to leave your record for seven years. Many people say that going through a foreclosure is actually worse for your credit than going through bankruptcy. Therefore, if you can sell your house to get your finances back in order, it would definitely be worth your consideration. As long as you only have a few late payments on your credit report, you should be able to bounce back from that with no problems.

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