Saturday, March 1, 2014

Waiting Until Spring to Sell Your Home Could Cost You

Every year at this time, would-be home sellers start asking themselves the same question, “Should I sell my home now? Or should I wait until the spring?”  Through the years people have been conditioned to think that their house would not sell in the winter months.  The idea is that their home has more curb appeal in the spring when the grass is green and the flowers are in bloom, therefore they should wait until spring to list their home.  But truth is that if you are serious about selling your home, waiting until springtime to enter the market could end up costing you money.  As the New Year gets underway, here are 5 reasons it’s best to sell right now:
 1.  Less Competition
Every year home sellers flood the market with new listings in the spring.  If you wait, you will need to be more aggressive when pricing your home in order to compete with all of those new listings.  But if you enter the market now, while inventory is lower, you eliminate that competition!
 2.  Serious Buyers
You might be fearful that there are fewer buyers in the market during the winter months.  And, while it’s true that there are a reduced number of buyers, the ones that are out there looking at homes are serious about buying a house.  Historically speaking, although spring and summer months do tend to offer more home buyers within the market, those buyers are not as serious about purchasing a home.  For starters, they have ample time to shop all of your competition; they are not in a rush.  And, although you may have a bigger pool of buyers looking at your property, a fair number of those added buyers are just kicking tires; there are a lot more “looky-loos” during spring and summer months.
 3. Interest Rates Are Still Low
Over the last several years we’ve become complacent with low interest rates, but they will not remain this low forever.  Rates have been ticking upwards and no one really knows what the rates will be in the spring.  Buyers who are in the market now can afford a lot more house while the interest rates are still low.  Once the rates go back up, buyers’ budgets will be negatively impacted as a result.  If you plan to purchase another home yourself, this provides an added benefit to you when you assume the role of buyer in your next transaction.  When spread across the term of a 30 year loan, even a ½ percent increase on your loan interest can cost you tens of thousands of dollars.  The sooner you lock into a low rate, the better off you’ll be.
 4. A Smoother, Faster Transaction
One of the biggest challenges faced by home sellers in 2013 was the time it took to go from contract to closing.  Financial institutions have been flooded with loan requests for purchases as well as refinancing. One benefit to selling your home before spring is that the demand for loans quiets down considerably.  With lenders experiencing less demand, there are fewer delays for both buyers and sellers.  And as the saying goes, time is money.  The sooner you wrap up your transaction, the more money you will save in mortgage interest, property taxes, hazard insurance, etc.
5. Getting On With Your Life
While you may not be able to attach a dollar amount to this last item, there is definitely value in moving on with your life.  Think about the reasons you want to sell; do you want to be closer to family? Are you taking a job transfer?  Does your current health status require a different living environment?  Do you want to get your kids into a better school district?  Whatever the case may be, think about the advantages in being able to regain control of your life’s path.  There is significant value in moving on with your life and pursuing what is truly important to you and your family.

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