With low mortgage rates and the capacity for remote work, many families are considering moving. Here are some reasons why you might want to sell now, or why you might want to stay put.

In a seller’s market when mortgage rates are historically low, you might be tempted to sell your house at top dollar and upgrade to something with more space. After all, the pandemic has made elaborate outdoor spaces even more appealing, and if you’re able to work remotely, you may be considering less expensive real estate further from the office.

But in these uncertain times, you might also feel like staying put in your current home. And there are reasons why 2021 may not be the best time to sell, so you’ll need to weigh your options carefully.

Here are some reasons why you may or may not want to sell your house in 2021 so you can evaluate your own situation.

3 reasons you might want to sell your house

1. You expect to earn a ton of profit

If you currently own a starter home in a hot area, you might be sitting on a gold mine. Because of the millennial home-buying boom, there’s a ton of competition for homes that are well-priced for first-time buyers. These starter homes are difficult to find, so if you’re living in one, it’s possible you’ll get an offer above your asking price.

Regardless of the type of house you own, if you live in a hot area where there aren’t many homes available, you might earn a profit if you choose to sell right now. For example, Austin, Texas home values are up 15% from last year, and competition for homes in the area is fierce. If you expect to make a killing from selling your home right now, that could be a reason to sell your house in 2021.

2. You can get more house for less

Although we may see subtle increases in mortgage rates this year, economists expect rates to remain relatively low. That means you may be able to upgrade to a more expensive house and still end up with a lower monthly payment. And if your employer has decided to allow your team to work remotely on an ongoing basis, you may be able to move further out from the office where homes are typically less expensive.

If there’s a way you can get more space or more amenities for less money, it might be a good idea to sell. Just make sure to factor in the costs to prepare your house for sale and seller closing costs before you make your decision.

3. You need to move for work or family

Finding a new home can be difficult, and moving is incredibly stressful. But sometimes moving is just necessary. You may need to be closer to family, especially if you need help with child care. And despite the fact that remote work has become common, some employers may still require time in-office or changes in the economy may have forced you to change careers.

If you got a new job or were transferred, you may not have a choice about moving. Regardless of your reason for moving, make sure to check out the best mortgage lenders so you’re financially prepared to make an offer on the new house you’re shopping for.

3 reasons why you might not want to sell your house

1. Your home is distressed and you can get an HELOC to fix it up

Most homebuyers want homes in turnkey condition. If your home is distressed, there’s a risk it will stay on the market too long and you won’t get the price you want. But just as mortgage rates are low, you can get low rates on a home equity loan or home equity line of credit (HELOC).

That means you’ll be able to finance home improvement projects that could actually add value to your home above and beyond what you spend. For example, HomeAdvisor estimates that replacing your garage door can deliver a 97.5% return on your investment and a minor kitchen remodel provides an 80.5% ROI.

If you’re wondering how to get a loan to make updates on your home, it’s easier than you think. It’s possible to get the funds you need quickly from an online lender. For example, with an HELOC from Figure, you can have funding initiated in as little as a five days and at a competitive rate.1

2. You already refinanced and have a great rate

If you already took advantage of the low mortgage rates last year and refinanced, you likely won’t be able to get a lower APR on a new loan. Unless you need to move for some other reason, it could be worth waiting until there’s more inventory and you won’t need to compete with other bids. Because interest rates are expected to stay low, there’s no need to rush a move, especially if you’re already getting the lowest possible mortgage rate.

3. Your income is unreliable

One-quarter of adults lost their job or had their income reduced as a result of the coronavirus pandemic, so it’s not uncommon for families to be struggling right now. Although you might think that downsizing could be a good solution to financial distress, there are many expenses wrapped up in selling a house, including making repairs, marketing efforts, and closing costs.

If your income is unreliable, you may be better off choosing to tap the equity in your home rather than sell it, especially if you don’t expect to make a profit.

Bottom line

If you need to move or expect the sale of your home to be lucrative, 2021 could be a great time for you to switch houses. But you should consider your current financial decision, the particular real estate market you’re in, and the condition of your home before you make your decision.

Whatever you decide, now is a great time to get low interest rates on home equity loans, HELOCs, and mortgage refinancing, so if you need to tap the equity in your home or get a lower monthly payment, you’re in a great place to be able to do so.

Figure Lending LLC dba Figure. 15720 Brixham Hill Avenue, Suite 300, Charlotte, NC 28277. (888) 819-6388. NMLS ID 1717824. For licensing information go to www.nmlsconsumeraccess.org. Equal Housing Opportunity.

1For the Figure Home Equity Line, approval may be granted in five minutes but is ultimately subject to verification of income and employment. Five business day funding timeline assumes closing the loan with our remote online notary. Funding timelines may be longer for loans secured by properties located in counties that do not permit recording of e-signatures or that otherwise require an in-person closing.