It’s no secret that the housing market has certainly turned around. Most markets across the country are seeing an increase in housing prices and a drop in inventory, which makes supply and demand a little more challenging for buyers. However, sellers are finding themselves now about the water where their homes are worth more than they owe. This is a big step considering where we’ve come over the last five years. But, is this really a reason to sell?
I speak to real estate agents, buyers and sellers on a daily basis about the ebb and flow of the real estate market. Sellers want to know how much they can get for their home and buyers want to know if now’s a good time to purchase. Real estate interest rates are increasing but not at a dramatic rate. While refinancing may be off of the table for some, many first-time home buyers are finding new doors being open to them with programs, options, and opportunities for low down payments, Home Path homes and a more stable economic environment.
But I also speak with sellers about the right opportunity and time to sell. Just because it seems like a good time doesn’t mean you need to sell nor should you. Most real estate agents think I’m crazy for considering telling a seller not to sell at any particular time but I feel it makes good financial sense and you’re doing a good service to your seller by informing them of the options in current market stability on which they would sell.
If you’ve been wavering or on the fence about selling because you been waiting for the market to turn around and you have a good direction of where you want to go over the next couple of years, now may be a great time to sell. If you’ve been waiting for your home to gain the equity you need in order to pay real estate commissions and potentially a gain a down payment on a new home, it may be time to sell.
Of course, if you need to sell because of job relocation, family status, medical expenses or other necessities, you certainly shouldn’t wait too much longer and a short sale may be your best option, especially if you are underwater in your mortgage payments.
If you’ve been waiting for the right opportunity to sell in order to downsize or move up into a larger home, now would be a great time.
It’s time to stay.
If you simply like to move around from one place to another and you don’t care about gaining a profit here or there it may not be the time to sell. Too many homes on the market saturate it and then the home prices start to decrease. If you are planning on listing your home ridiculously high just to see if it will sell, that’s really not a smart financial move. Yes, you may get the stupid buyer out there to purchase your home but then you have to scramble in order to buy a new home and because of your attitude you may be inflexible and unreasonable with the buyer during the transaction.
Many sellers that don’t really need to sell will price their home ridiculously high just to see if they get any bites. If they don’t, they’ll simply take it off the market. The problem with that is, sellers around you may unrealistically price their home and then sit on the market too long creating the stagnant unbalance of supply and demand.
If you need to sell or have been waiting to sell, it’s time. If you’re simply testing the market or want to see how much you can get but don’t really need to move, it’s time to stay.