Many homeowners are having trouble today, owing more on their mortgage than their home is even worth. Many owners are sitting on the sidelines waiting for more market to improve, or they simply do not want to buy another home, so they stay where they are. Let’s take a look at some other reasons that could change your mind. So, under what circumstances should you consider selling your home, even if you didn’t plan to?
The current inventory is low: Supply and demand is always in control. Inventories of both new and existing homes for sale should be looked at. Low supply usually creates upward pressure on prices. At this point in this, more and more buyers are returning to the market. Read on: It’s a Seller’s Market, But Your Home Won’t Sell Itself. However, combine low inventory and increasing demand, and you just might get more money for your home than you ever thought you would.
Mortgage rates are really low: Whether you believe that mortgage rates are going up soon or not, many people who have thought about purchasing a home are hesitant because they are scared they will lose buying power if they wait too long. It helps sellers when buyers can afford more home due to low mortgage rates. However, if you sell now with the plan to buy right away, you’re getting the same low interest rate advantage. The money you take away from your sale, though possibly somewhat lower than if you wait a while, will go farther in financing another home.
Sometimes the market is doing too well to not take advantage of it: If you own in an established area with a history of stability and high demand, it can make all the difference. Real estate is local, and while national influences bear on prices, the right location can and will make a major difference in the sale price. Check the number of sales in your neighborhood versus others in the market area to see if the demand is higher.
You won’t have to pay as much of a commission: Real estate agents are selling fewer homes. As they work on commission, this means they aren’t earning as much as they used to. You can probably negotiate a lower commission rate for your listing in the current market climate.
Holding Costs: Every day you keep your home you have costs to continue living there. For example, you’ve still got to pay utilities. Your realtor can’t show your home in the dark, or in the blazing heat. Waiting for that potential minor increase in price can be a mistake.
Think of it this way..when you have euro dollars that you’ve been wanting to convert, but have been waiting for the dollar amount to rise in France, the value of a dollar could go way up tomorrow, and then the next day fall below its value in American dollars. Also consider the fact that if there is a real estate property tax increase, that’s extra holding cost. Air conditioning, heating, plumbing and electrical problems can jump up unexpectedly. Of course, in the end, whether it’s the right time for you to sell your home or not is entirely based on your desires and situation.