After the housing bust, many of the agents I work with and train are still getting a little push back from skittish sellers. These clients are still wondering where prices are headed, what interest rates will land at and express concern about buyers being qualified for a home loan. While all of these are valid questions, the fact of the matter is that we are in a red-hot housing market, meaning there are several reasons why waiting to sell your home doesn’t make a whole lot of sense.
1. Serious Buyers Are Buying…Right Now
Historically, in my market, the most buyers are buying homes from April through June. Smart and savvy buyers will typically start in March so that they can beat the heavy competition. Since our market is currently experiencing multiple offer situations in just about every scenario, that’s a clear indication to me that waiting until after “selling season” to list a property isn’t a wise idea…at all.
2. There Is Less Competition In the Market
Inventory is low right now. Buyers are looking for features, amenities and neighborhoods that simply don’t have any listings. In fact, I have coached my agents around talking to sellers (based on prior MLS listings) about considering a move now, to satisfy the ravenous buyer demand in the marketplace. Sellers who wait to put their home up for sale, might find themselves waiting longer to sell it.
3. The Process Will Be Quicker
Speaking with lenders and other industry professionals – despite increased requirements for mortgages – closing times in the current market are fast (as low as 21 days in most cases). What sellers need to be aware of, however, is that as the market gets even hotter, loan processing times will slow down as banks will be inundated with applications and files.
Bottom line: Selling now as opposed to waiting makes the process quicker and simpler.
4. The Cost of Moving Up Has Never Been Better
If a seller plans to move up into a nicer, more expensive home, the market is pointing me to now being the right time. Experts and financial gurus predict that prices will increase by as much as 19 percent from now to 2018. What does this mean for clients working with agents in my office? Essentially, it will wind-up costing sellers more for their down payment and mortgage payment when they opt to wait. Another reason to put your home on the market now as opposed to waiting? Rates are projected to be well over five percent by this time next year.
While waiting in the past few years would have been exactly what I would have advised clients to do, I can’t say the same today. If you are thinking about selling, my advice is to find out what your home’s market value is and placing a sign in the yard sooner than later. That is, if you want to make the most off your current sale and save some dough on the buying end.
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