Why Do People Sell Their Homes?

American homeowners are a restless lot, moving every five to seven years on average. Ranging from personal relationships to physical surroundings, there are many reasons why people sell their homes.

However, a home that no longer is a good fit for one family can be a dream home for another. When a home no longer is a good fit, it might be time to make a change.

Home-Related Reasons

The motivation for a move often reflects the residence itself, or the area around it. This does not always mean there is something wrong with the home or the area, but the situation for the homeowners may have changed, requiring something different.

Home is Too Small

Increased family size is the most common rationale for selling a home. First-time home buyers often outgrow their starter residences. As the kids grow, people say they need a larger place.

Made a Mistake

Maybe they thought they could get by without a front yard, but the noise from the street is just too much. Maybe the pool is proving a pain to maintain—and they never use it anyway. Perhaps they’re sick of tripping over the steps to the sunken living room. Whatever the reason, homeowners might believe they made a mistake when purchasing their present place and want out.

There Goes the Neighborhood

The neighborhood might have changed economically, socially, or in terms of infrastructure. Perhaps the overall area has developed in a way not to the residents’ liking: grown too commercial, too busy, too young, or too quiet.

Financial Reasons

Money matters are another common motivation for moving. Not only do people’s incomes change over time, but the values of homes also change over time, introducing another factor.

Moving on Up

People outgrow their homes in a figurative sense as well: Their careers are flourishing or they’ve come into money and can afford a bigger, grander, more expensive residence.

Deferred Maintenance

Some people don’t want to put on a new roof, replace the siding, or buy a new furnace, so it’s easier to buy a newer home. When you figure the life of most residential infrastructures is about 15 years, it could make sense to get out before it’s time to spend the big bucks.

Cash in Equity

Some homeowners can’t stand the fact their place is worth all that money and they can’t, as the saying goes, eat the house. Rather than stare at four walls with empty pockets, they find it more financially expedient to sell and use the funds for other things. So they cash in, taking advantage of the appreciation in property values.

Personal Reasons

Life changes in a lot of ways that have little to do with money or the size of one’s family. When owning a house is the only thing keeping a homeowner tied to a specific area, it might be time to consider cutting ties to the house as well.

New Job or Transfer

Obviously, work-related relocation makes it necessary to pull up roots—and it doesn’t have to be a full-fledged move to another town or state. Many people draw the line at a commute that exceeds a certain distance, especially if it means driving in heavy traffic.

See Family More Often—or Less

People frequently move to be near relatives, especially as they age. Conversely, some homeowners move to put distance between themselves and their kin. Dysfunctional and fractured families have been known to grow closer after being separated.

Need a New Challenge

Some people enjoy fixing up a home—spending time, money, and effort on remodeling. But once the work is completed, they become restless because they have nothing left to do. They like nothing better than selling up and moving on to the next fixer-upper.

Different Interests and Priorities

Some folks are simply tired of owning a home and would prefer to travel, pursue a hobby, or be less responsible. So, for these people, homeownership loses its priority status and selling a home turns into the ticket for realizing dreams.

Life Cycle Reasons

As people reach significant milestones in their lives, their residential preferences and needs often alter.

Changes in Relationships

Moving in with a partner or getting married usually means selling for one or both of the homeowning parties. Conversely, breakups also are a common reason for people to sell homes. One party may need to buy out the other and not have the cash available, the place may not be affordable to sustain on a single income, or the home simply holds bad memories.

Empty Nest

Downsizing a home is a key reason why empty-nesters move. The kids have grown up and moved out, and now the parents want a smaller place. Plus, the older you get, the harder a big house is to maintain, and the better an apartment or townhouse looks. Physical ailments make it difficult to climb stairs, walk long distances, negotiate narrow spaces, or do yard work. Since refitting can be expensive, it’s often more expedient to move to a place with a preferable layout or a condo complex with maintenance staff.

Retirement

Active-adult communities are attracting many buyers over age 55. These planned communities offer golf courses, clubhouses, workout and recreational facilities, social gatherings, and health and medical facilities, making it easier to age in place.

Death in the Family

When one half of a couple dies, the survivor often finds the home too big or too full of sad reminders to remain there. Maybe grown children find the familial home impractical to keep after their remaining parent goes. Estate planners often recommend that homeowners transfer title to a property into a trust, which allows their heirs to avoid probate proceedings and sell a home more easily.

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