Selling your home is a big step. How do you know you’re ready to sell your home? Here are 8 signs that you’re in a good position to sell your current home and buy a new one.
1. You have positive equity in your home
Equity is the difference between what your house is worth and what you owe on your mortgage. So if your house is worth $300,000 and you owe $200,000, then you have $100,000 of positive equity. Most homeowners have positive equity in their homes, but it’s possible to have negative equity if your home is now worth less than what you paid for it. How much equity do you need to sell your home? Unless you have to do so to avoid foreclosure, don’t sell your home unless you can sell it for more than you bought it for. In terms of what you need to buy a new home, it’s best to have enough money from the sale of your current home to make a 20% down payment on a new home and to be able to pay for closing costs and moving expenses.
2. You’re free from debt outside of your mortgage
The best case scenario for buying a new home is that you are financially secure, with no debt outside your mortgage and enough cash in an emergency fund for at least 3 months of expenses. However, it is possible to carry some debt outside your mortgage and still be approved for a loan for a new home. Lenders will look at your DTI, or debt to income ratio to decide if you’re eligible for a loan. A favorable DTI is less than 43%. To figure out your DTI, add up all your monthly debt and divide it by your monthly income. For example, if your monthly debt is $500 and your income is $3,000, then your DTI is 16%.
5. You have cash for home improvements
In order to get the most out of the sale of your current home, it may be necessary to make some upgrades. Typically, the best places to invest money are in paint jobs, the exterior of the house, and upgrades to the kitchen and bathrooms. Home improvements aren’t a must-have, but having the cash on hand to update your home and maximize its value is a good sign you’re ready to sell.
6. You're emotionally ready to sell
While you may be in good financial shape to sell your home, it’s also important to assess whether or not you are emotionally ready. Can you handle the criticism of your home that potential buyers may make without taking it personally? Are you ready to let go of the memories that you created in your home? Are you prepared to put in the work to get your home ready for the market and keep it ready to show for weeks or months? These are some of the questions you will need to answer in order to determine if you’re emotionally ready to sell.
7. Your current home no longer fits your needs
Whether you need more space to accommodate new family members or you’re ready to downsize, it’s important to assess whether your current home fits your needs. Changes in your family size or lifestyle indicate that you’re ready to sell.
8. You’re in a sellers market.
Do some research and find out the state of your local market. If you're in a seller’s market, meaning that demand for homes is greater than the number of homes available, it’s a good time for you to sell. In a seller’s market you’re likely to get multiple offers on your home that are competitive and you’ll be able to make money off the sale of your home, which is always the outcome you want as a seller.
In summary, to determine if you’re ready to sell your home, you’ll want to take stock of your financial situation, your emotional situation, and the state of the local market. If these three factors are all working in your favor, it’s a sure sign that you’re ready to make the move of selling your home.
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A little bit about my real estate background...
I got my license in 2014 and since then I have had the honor of being named a Top Agent by Virginia Living Magazine, a Top Agent in America and in the top 5% of local agents in production and negotiation by HomeLight. In addition to sales, I am passionate about micro loans and created a local KIVA team that provides loans to those who could not otherwise get financing. My passion for real estate investing eventually led me to start an investment club in 2017. I later joined forces with Chase Louderback to create the investors club we have today.
Join us tonight from 6-8pm
I have not only sold short term rentals to clients but also taken a deep dive into understanding how to create successful short term rental business locally. Tonight I will be discussing how I analyze a property to see if it makes sense as a short-term rental as I dissect a previously listed short term rental that was for sale.
Join the meeting here. About Harrisonburg Real Estate Investors Network
The Harrisonburg Real Estate Investors network is a group of experienced investors, agents, lenders, attorneys, insurance brokers, contractors, and real estate newbies looking to grow their business. They focus on real estate investing ranging from residential to multifamily investments and active to passive real estate investing. Their goal is to establish a community of real estate professionals, both amateur and experienced, that creates the network and environment to grow everyone’s business. Check out their Facebook page or join their Meetup group to get more information about upcoming meetings!
Whether you are a visitor just passing through the Shenandoah Valley or you have called the Valley your home for decades, exploring the region’s caverns is an educational and beautiful activity for all age groups. A cavern is a large cave, typically underground. Touring caverns is ideal no matter the weather since they all boast an average temperature of 55 degrees fahrenheit. Below are several caverns within a 60 mile radius of Harrisonburg, VA. Please note that the prices given are subject to change but reflect the regular ticket price at the time this blog post was written.
Endless Caverns
Website: http://endlesscaverns.com
Address: 1800 Endless Caverns Rd, New Market VA 22844 Distance from Harrisonburg: 15 miles away Price: $20.00 adult / $9.00 child Overview: This mile long, 75 minute tour will explain how the cavern was first discovered in 1879 and explore the beauty of the caverns. What makes it stand out: This six mile long cave at the foot of the Massanutten Mountain range features seemingly “endless” tunnels and chambers and many areas of the cave have yet to be explored. Additional Attractions: RV camping on the property that includes a pool, catch and release pond, recreation hall, game room, playground and nature trails. Grand Caverns
Website: https://www.grandcaverns.com
Address: 5 Grand Caverns Drive, Grottoes VA 24441 Distance from Harrisonburg: 19 miles away Price: $20.00 adult/ $11.00 child Overview: 70 minute walking tour offered daily. The cavern tour consists of approximately one mile of walking at a leisurely pace. What makes it stand out: Originally called Weyers Cave, Grand Caverns opened for tours in 1806, making it the oldest continually operating show cave in the U.S. There are over 200 verified civil war signatures in the cave. Additional Attractions: Fountain Cave Adventure Tours and Shelter Rentals. The park at Grand Caverns is complete with a pool, mini-golf, trails and a playground. Luray Caverns
Website: https://luraycaverns.com
Address: 101 Cave Hill Road, Luray VA 22835 Distance from Harrisonburg: 31 miles away Price: $30.00 adult/ $15.00 child Overview: The well-lighted, all-paved walkways on the tour are 1.25 miles in length and lead visitors through cathedral-sized rooms with ceilings 10-stories high. What makes it stand out: Luray Caverns is the largest and most popular caverns in Eastern America. It is home to the Great Stalacpipe Organ, the world’s largest musical instrument. Additional Attractions: The Car & Carriage Caravan Museum, Shenandoah Heritage Village, and Toy Town Junction are included with every Luray Caverns ticket. Melrose Caverns
Website: http://www.melrosecaverns.com
Address: 6639 N Valley Pike, Harrisonburg VA 22802 Distance from Harrisonburg: 7 miles away Price: 45 minute private tour for four people for $60- additional guests are $15.00 adult/ $10.00 child Overview: A 50 minute guided historical tour of the Caverns features both large and small chambers, a variety of formations, reflecting pools and historic carvings made by Native Americans and Union soldiers who camped there during the Civil War. The floor in the Caverns is leveled and there are no steps required to enter the lodge or take the tour. What makes it stand out: Wedding venue complete with event center, The Lodge, and accomodations at the Harrison Moore Farmhouse. Additional Attractions: Melrose Cavern Guest Station. Shenandoah Caverns
Website: https://shenandoahcaverns.com
Address: 261 Caverns Road, Quicksburg VA 22847 Distance from Harrisonburg: 23 miles away Price: $28.00 adult/ $14.00 child Overview: The personally guided caverns tour consists of a one mile, one hour walk through around 17 spectacular rooms and passageways. What makes it stand out: The famous "Breakfast Bacon" formations which were featured in National Geographic Magazine Additional Attractions: Also home to Main Street of Yesteryear (a collection of antique department store window displays), American Celebration on Parade attraction (parade floats), Gemstone Sluice and Earl’s Place (a 7 bedroom Airbnb). Skyline Caverns
Website: https://skylinecaverns.com
Address:10344 Stonewall Jackson Hwy, Front Royal VA 22630 Distance from Harrisonburg: 54 miles away Price: $22.00 adult/ $11.00 child Overview: The one-hour guided tour is complete with an award winning lighting system and three underground streams plus a 37-foot Rainbow Waterfall. What makes it stand out: “Skyline Caverns is one of the few places in the world which hosts anthodite formations. These unique crystals spread in all directions, actually defying gravity.” Additional Attractions: Skyline Arrow Miniature Train and the Enchanted Dragon Mirror Maze. Have you visited one of these caverns before? Comment below to let us know how your experience was! Sources: https://www.dictionary.com/browse/cavern https://www.virginia.org/caverns/ 
Who is Evan Mayo?
Evan Mayo is a trial attorney and real estate investor located in Charlottesville, Virginia. He began investing in real estate in Charlottesville in 2017 and has a personal portfolio in Charlottesville, Virginia and Harrisonburg. He also works in a real estate partnership based in Chattanooga, Tennessee that raised over 1MM in private capital to purchase 30 units in the past eighteen months. Evan’s law practice focuses on personal injury, defamation, and construction litigation cases. He also advises on real estate tax matters including self-directed IRAs and 401ks. His primary real estate interests are creative financing and the use of equity and debt instruments to permit small and medium-scale real estate investors to continue growing beyond their personal means.
Join us tonight at 6pm
Join us for a conversation with Evan Mayo about techniques for fundraising and using partnership structures to accelerate real estate growth. Evan will share the different structures he has used in partnerships in Tennessee and Virginia to accumulate small multifamily properties over the past two years. He will include tax treatment of these different structures, creative methods to compensate wholesalers, contractors, and silent partners, including collateralization, shared appreciation notes, and an introduction to options as security concepts. There will be a Q&A period following the presentation.
About Harrisonburg Real Estate Investors Network
The Harrisonburg Real Estate Investors network is a group of experienced investors, agents, lenders, attorneys, insurance brokers, contractors, and real estate newbies looking to grow their business. They focus on real estate investing ranging from residential to multifamily investments and active to passive real estate investing. Their goal is to establish a community of real estate professionals, both amateur and experienced, that creates the network and environment to grow everyone’s business. Check out their Facebook page or join their Meetup group to get more information about upcoming meetings!
 This month we are excited to announce that we have Paul Moore guest speaking on his journey from Newbie to Commercial Real Estate Mogul! Paul Moore is the Founder and Managing Director of Wellings Capital, a company that manages recession-resistant commercial real estate funds. Currently, Wellings Capital and their investors have invested in over 17,000 self-storage, mobile home park, and multifamily units across the US valued at over $500 million.
Paul began investing in real estate in 2000 to protect and grow his own wealth. He then went on to complete over 85 real estate investments and exits, appeared on HGTV’s House Hunters, rehabbed and managed dozens of rental properties, built new construction and developed a subdivision. Paul is an active contributor to BiggerPockets and Fox Business as well as the author of “The Perfect Investment – Create Enduring Wealth from the Historic Shift to Multifamily Housing (2016). Paul has an upcoming book on self-storage investing and also hosts a wealth-building podcast called “How to Lose Money.” Come join us this month as Paul discusses his journey to where he is today and what he is currently seeing in the real estate market. You won’t want to miss this one! Join us live on Wednesday the 18th from 6-8Pm: https://zoom.us/j/91709745792?pwd=R0dBVis3SEllQTB5RWVPY3FtUndXUT09 |
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