Is Your Home Working For You?

The fact that you own a home means that you understand the importance of real estate in building financial security for you and your family. Homeownership is the best investment you can make. While fighting a pandemic and protesting inequities in our society, home prices remain stable, and in Washington DC, they continue to increase.

What does that mean for a homeowner?

I often meet families who are reluctant to sell their family home. Special family memories abound. Sometimes, there is this feeling that if they sell the house, they will have surrendered to societal pressure rather than protecting their family asset. The reality is the best thing you can do is determine what is in the best interest of you and your family by considering how you can leverage your home to increase your wealth. There are two approaches among many you might consider:

1) Consider selling now!

Sell your home and use the net proceeds to buy another that accommodates your current lifestyle and perhaps frees up capital for education, health, and other family priorities.

It is a Seller's market in the DMV. Homes priced right see dramatic price escalations and multiple offers. Buyers are waiving inspections, financing, and appraisal contingencies for their offer to be considered. Once you decide to sell, you can expect to close on your home quickly. So before you move forward, here are a few things to think about:

—What do you and your family need in a home now and in the future?

The market is changing, and with the COVID pandemic, we have had time to take stock of our living situation. Does it serve you in every capacity? Is there enough space? What do you need that you currently don't have?

If you are older, you may be ready to downsize, so you have less space to take care of, a lower mortgage and reduced maintenance.

If your family is growing, you might want to move to a larger home with outdoor space, and within proximity to the schools, you want your children to attend.

—Has the cost of home maintenance been a financial challenge?

Older homes require more maintenance. Weigh the amount of money and time you are spending to maintain your current home to see if it is worth it.

2) If now is not the time to sell, you still have options!

You might consider keeping your home and consider a home equity line of credit (HELOC) to purchase another home or pay off debt.

—How much equity do you have in your home right now?

As your home value has increased and you have paid your mortgage, you may have equity that can be used for other family priorities.

Despite the COVID-19 pandemic, the real estate market is strong. We are discovering that more people have more equity than ever before. According to the recently released Homeowner Equity Insights Report from CoreLogic, in nearly every state, there was a year-over-year first-quarter equity increase, averaging out to a 6.5%

—Interest rates are very low…have you thought about refinancing your mortgage loan?

Mortgage interest rates are at an all time low and many folks are opting to refinance their mortgages to lower their monthly payments. This allows them to use the money that they save each month to take care of their family’s needs or simply save the funds for future financial security.

Before you decide what is best for you, get some advice!

I know that selling your home or even refinancing is a big decision. But I believe your home should work for you and fulfill your needs. It is an investment that has so much more potential to contribute to you and your family's wealth if you make smart decisions. That's why my real estate team, along with a mortgage broker, will provide some insight, strategies, and answer your questions regarding the market and tips to help you decide.

Receive a comparative market analysis (CMA) to provide you with what your home is worth today. Just click HERE and answer a few questions to receive your home’s current value.

Join us on Zoom, July 29th, from 7 PM-8 PM to learn more. Register HERE or the link below to join us through Eventbrite!

Cheryl Shaw is a Top DMV Realtor and the lead agent of the Shaw Sells DC Team. She is licensed in DC, Maryland, and Virginia and specializes in helping professionals make real estate decisions for their families and community.