There's a lot more to "timing" the sale of a house than just hearing the market is hott. The Spring housing season usually gets off to a strong start by the end of March, this a a time when people are past the busy holiday seasons and start thinking about buying a home. However, that doesn't always qualify it for the Best Time to Sell, let me explain...
An important step that needs to be considered when selling a house is understanding WHY you want to sell because without a "why" there really isn't any incentive to sell. If you know your "why" then you're off to a great start, if you do not know your "why" than be sure to read to the end of this article where I provide some clarity to help you find it.
As I mentioned earlier, there's a lot to know when you're wanting to time the sale of your house. Here are 3 Reasons Why Selling Now Makes Sense:
1 - The Market Inventory is Low, this is making it a seller's market, meaning there are more buyers competing to buy your house. By itself this is a double edge sword, because if you're selling there's a high probability that you're also buying and in the same market. However, because you're selling generally means you have more money to put towards your next purchase and as such are a much Stronger Buyer and stronger buyers tend to get their offers accepted.
2 - Move Up Buyer's are Fewer, which means the "buyer pool" is much smaller at a higher price level. Most people selling a house are going to purchase a more expensive home after theirs sells. Buying in a more expensive but less crowded market puts you in a position to negotiate, allowing you to leverage more than just a money when making an offer. One of the hardest things when selling your house is knowing for sure that you'll find the home you want to buy without giving up the house you currently have. There's a simple strategy where you make an offer with a contingency, and in this current market you can leverage this strategy to guarantee you'll get your dream home. On top of that, IF done right, you'll move just one time. You can learn more about this @ RyanMihld.com
3 - Interest Rates are Climbing, it's been talked about for years and the UP-cycle has started. As interest rates climb buying power diminishes and the cost of owning your dream home increases. If you are truly wanting to buy a different home, buying sooner is better than later when you consider the current trend in the UP-cycle of mortgage rates. Today is June 3, 2018 and rates have increased from 4.125% to 5% in just one year, that's nearly a 1% increase. On a $350,000 home purchase the difference in these rates are costing you $191 per month, PER MONTH, that's $2,300 more per year.
Here's an scenario of selling now verses selling later to help you understand what's happening:
This scenario is based on purchasing the same home. As you can see the cost of owning the very same home increases tremendously by waiting just one year. Regardless of if the value of your current house goes up, you will still end up paying more for your Dream Home because of the expected increase in mortgage rates.
*based on a 5% interest rate **based on a 5.75% interest rate
This information and Interest rates are for example purposes only, this is not intended to be an indication of loan qualification, loan approval or commitment to lend. Other limitations apply.
Understanding Your Why - There are several reasons why people sell a house, for most it's to start the next chapter in life with a home you've dreamed about. If you've dreamed about a different home then you're likely looking at home search sites and scrolling through pictures for hours and You've got the "bug".
The important thing to do at this point is to really discover your "why" because this is what will help you to make the best decision when it comes to selling. When selling your house it's not about money, it's all about the next home. It just so happens that we need money for the next home, but money is NOT the driving factor.
Here are some "why's" -
Once you grasp your WHY, you've got to make the commitment to sell, and with a strong "why" that's easy to do.
The NEXT BEST STEP is doing it Right Now, because as you've seen, waiting is going to cost you a lot more money.
If you have questions regarding selling, feel free to reach out me, helping people is what I do
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