How much do we need to sell our House for?

Question

We have been in our house for two years now. I will be obtaining a job that will double our income, so we are looking for a new home. We are first time homeowners, so I am unfamiliar with the mortgage process. Do we need to sell our home for at least the current balance of or mortgage, or do we need to calculate any interest on top of the current balance?

Answer 1

First, find out what is the current market value of the houses in your neighborhood. That entails learning  what comparable properties have sold for in the past few months. Chances are, that is what your house will sell for also.  Real estate agents and title companies have access to this information.

Figuring what your house will sell for by calculating what you bought it for and figuring in interest will not represent the true current market value of your house. Houses only sell for what buyers are willing to pay. Buyers don't consider what you owe when putting in offers on a house. If your house is overpriced, they'll buy the cheaper one up the street.

If you've only had your house for a couple years, you might not have any equity because you've been paying mostly interest since you're loan is so recent and the market is worse than it was a couple years ago.

You should put your house on the market and start looking for a new house. You want to make the sale of your current house contingent upon you getting a new house. That contingency will save you from ending up selling your house and having nowhere to go.