Interest rates continue to remain around 3%, according to the National Association of REALTORS® (NAR). Condo prices lead the way with prices up 18% from the same time last year,
What You Don't Know About Waiting Could Cost You Plenty
Dated: December 29 2020
TIMING IS EVERYTHING
Five ways it could cost you plenty by waiting to put your property on the market…
1. INTEREST RATES
Over history, interest rates have fluctuated up and down. No one can guarantee that interest rates will not go up again. Currently, we know what rates are. If rates increase, buyers are knocked out of the marketplace. With fewer buyers in the marketplace, the chances of finding a buyer willing to pay your price decreases. You can't predict what's going to happen with interest rates. Nobody can. There is an advantage in dealing with a known set of circumstances.
2. NEW PROPERTY COULD COST MORE
If you're buying a new, more expensive property, you could cost yourself plenty. For example, let's say you're selling a $100,000 property and looking to buy a $150,000 property. If both properties appreciate at the same rate of 3% over the next six months, you gain $3,000 on your existing property. However, the $150,000 property will now cost you $154,500 or a net loss of $1,500.
3. TIME IS ON YOUR SIDE
The very fact that you have time on your side could save you thousands. Many sellers that have waited have put themselves in a "have to" sell situation, and had to accept an offer for less than what they wanted. The fact is when you have time on your side, you won't feel pressured to accept an offer that's less than what you want.
4. SUPPLY AND DEMAND
Right now in the marketplace, there are a certain number of buyers and a certain number of sellers. We are currently dealing with a known set of circumstances. There is no guarantee that in a few weeks, or a few months, there might be fewer buyers or more sellers in the marketplace. Either way by waiting, you are taking a gamble with accomplishing your real estate objectives.
5. TAX CHANGES
Currently, we enjoy several benefits for owning property. See your accountant for tax advice. Should the federal government decide to change capital gains or interest deductions, you could risk the current tax advantages which we currently enjoy. The only thing that never changes is change itself.
It might be more convenient to wait to put your property on the market for various reasons. If you knew by waiting you could be costing yourself $3,000 or more, would you still want to wait? Part of the reason you hire a professional is to provide you with all the facts so you can make an informed decision.
Many factors come into play when deciding to sell a property, and timing can be one of the most important factors. If money is a consideration in the sale of your property, carefully consider each of the five ways sellers have lost money on this report.
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