Many sellers are still
hesitant about putting their house up for sale. Their concerns are: where are
prices and interest rates headed? Can buyers qualify for a mortgage?
These are all valid questions. However, there are several reasons to sell your
home sooner rather than later. Here are five of those reasons.
1. Strong Demand
Currently there is a
pent-up demand of purchasers since many home buyers pushed off their search
this past winter & early spring because of extreme weather. According to
the National Association of Realtors (NAR), the number of buyers in the market,
which feel off dramatically in December, January and February, has begun to
increase again over the last few months. These buyers are ready, willing and
able to buy and they are in the market right now!
2. Less Competition Now
Housing supply is
still under the historical number of 6 months’ supply. This means that in many
markets there are not enough homes for sale to satisfy the number of buyers in
that market. This is good news for home prices. However, additional inventory
is about to come to market.
There is a pent-up
desire for many homeowners to move as they were unable to sell over the last
few years because of a negative equity situation. Homeowners are now seeing a
return to positive equity as prices increased over the last eighteen months.
Many of these homes will be coming to the market in the near future. Also, new
construction of single-family homes is beginning to increase. A recent study by
Harris Poll revealed that 41% of buyers would prefer to buy a new home while
only 21% prefer an existing home (38% had no preference).
The choices buyers
have will continue to increase over the next few months. Don’t wait until all
this other inventory of homes comes to market before you sell.
3. The Process Will Be Quicker
One of the biggest
challenges of the 2014 housing market has been the length of time it takes from
contract to closing. Banks are requiring more and more paperwork before
approving a mortgage. As the market heats up, banks will be inundated with loan
inquiries causing closing timelines to lengthen. Selling now will make
the process quicker and simpler.
4. Now is a Better Time to Move-Up
If you are moving up
to a larger, more expensive home, consider doing it now. Prices are projected
to appreciate by over 19% from now to 2018. If you are moving to a higher
priced home, it will wind-up costing you more in raw dollars (down payment and
mortgage payment) if you wait. You can also lock-in your 30 year housing
expense with an interest rate in the low 4’s right now. Rates are projected to
be over 5% by the end of next year.
5. Time to Move On with Your Life
Look at the reason you
decided to sell in the first place and determine whether it is worth waiting.
Is money more important than being with family? Is money more important than
your health? Is money more important than having the freedom to go on with your
life the way you think you should?
Only you know the
answers to the questions above. You have the power to take back control of the
situation by putting your home on the market and pricing it so it sells.
Perhaps, the time has come for you and your family to move on and start living
the life you desire.
That is what is truly
important.
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