HomeLife Benchmark Realty Corp.

HomeLife Benchmark Realty Corp.

Cloverdale Real Estate 101: Should I Sell My House to Get out of Debt?

Debt is a very difficult hole to dig yourself out of. However, it can be done and many people do it every day. Whether or not you should sell your house to get out of debt is a different matter.

If you sell your house, where will you live? How will you live? Simply selling your house is not a good idea. If you can sell your house and find a studio apartment to live in, that may work. It all depends on your circumstances. 

Here are some situations where it makes sense to sell your Cloverdale real estate to get out of debt.

The Buyer Can Provide a Down payment

Getting a down payment is a great benefit if you are selling your house or Cloverdale real estate to get out of debt. Use that down payment on the first and last month’s rent for an apartment, and however many months you can afford between those dates.

From then on, there is little risk in selling your house to get out of debt since your rent is now covered. If you are able to work or draw a pension, you have an additional source of income to pay for incidentals like food and utilities. 

The rest of the money that you receive for the sale of your home should be enough to make a sizable dent in your debts, even after the real estate agent takes his or her commission. 

You Are Fine with Living in Smaller Homes

Whether you rent an apartment, live in a motorhome, or rent a smaller home, you will be living in less space than you were when living in the house you sold to pay off your debts. Some people adapt very well to sudden changes in living conditions. Other people need some time to adjust. 

Only you can know whether a specific living situation is right for you. It is possible to not sell your home or Cloverdale real estate and still pay off your debts. You just need a clear financial plan and you need to follow it. Real estate agents can be your first source of information regarding the financials of selling a home, as well as helping you adjust to a new one. 

What You Need to Keep in Mind

If you are unsure whether you will be able to successfully move from a two-story house to a studio apartment, talk to a Cloverdale real estate agent for tips. One tip that will increase your living space in an apartment dramatically is to put much of your belongings in a storage space or rental locker.

HomeLife Cloverdale can help you plan out the financial reality of selling your home. We have sold countless homes in Cloverdale and Surrey. Cloverdale real estate is our specialty. 

Contact us today to learn more. It may be possible for you to sell your home and pay off your debts at the same time.

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