Deciding to sell your home is a big call and not always an easy one to make because of the factors and variables involved.
Sometimes you love your home but you know it has become too small or too difficult to maintain. In other circumstances, you might feel like the costs involved with home ownership are overwhelming. You may also find yourself considering a sale because you have had a big life change like a separation and you could do with a fresh start.
If you’re sitting on the fence about selling your home, here is some information about making big choices that might help you figure out what to do.
Decision-making statistics
Economist Steven D Levitt conducted a major study into the outcome of people’s decisions. Heads or Tails: The Impact of a Coin Toss on Major Life Decisions and Subsequent Happiness was published in The Review of Economic Studies; it found that people who go with change are more satisfied with their decision.
To test this, Levitt had over 22 thousand participants toss a coin to decide whether or not to make a major change in their lives. He found that those who had the coin tell them to make the change were statistically more likely to be happier with the outcome than those who made no change.
Levitt’s study brought him to the conclusion that “people may be excessively cautious when facing life-changing choices.”
If you’re going by this research, always choose change. Statistically, it will make you happier in the long run. You don’t have to apply this to selling your house, it can also be related to looking for a new job or relocating to a new city.
What other experts say
In an interview with the Guardian, Psychology Professor Laurence Alison said, “In many ways, we’re wired to want to retain the status quo, to play safe. These big life decisions are unusual events in our lives. We don’t have much to compare them to, so we lack expertise – and the easy thing is to be risk-averse and stick with what we’ve got.”
Alison calls this ‘decision inertia’, and it matches Levitt’s findings by showing that people fail to change because of fear, when they probably should have taken a leap that would have improved their lives.
Should you sell your home?
Science says change makes people happier, but is the experience of other people enough to make your mind up when it comes to selling your home?
The truth is that every situation is different, and you need to review your options from every angle. Think about your:
• Long term goals in terms of lifestyle and work
• Current and future financial situation
• Family and what’s best for the children
• Ability to adapt to a new environment
• Potential to renovate instead of relocating (as well as the costs and time involved)
• Commute to and from the office
Other factors that will influence your decision to sell your home include the liveability of the area you’re in vs a new area and the distance you’re comfortable with when it comes to being near family and friends.
Finally, any expert on decision-making will tell you to do your sums and then seek advice. Talk to a real estate agent about what you hope to get out of your property sale and whether you will be able to find a new home that suits you within your price range. This will help you decide if that big step makes sense for you and your family.
Talk to your local Professionals agent for advice on whether to sell your home in 2023.
