Why Right Now May Be the RIGHT Time to Sell

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Ever sense the term “bubble” became a popular buzzword applied to the housing market in the mid-2000s, many homeowners have been holding tight, often reluctantly, to homes they no longer wish to own, patiently awaiting a turnaround. And for good reason. Debt ratios and unemployment rates were high, consumer confidence was low, and news about what was happening in the real estate market was largely dominated by stories of short sales and foreclosures.

But now in 2013, we are finding ourselves in a different position. Interest rates are historically low, the economy is on the upswing, and the short sales and foreclosures that had watered down home values for so long have been greatly absorbed. While the demand for real estate is increasing, the supply has been slow to respond due in large part to residual negative emotions that come from comparing current values to the inflated values of the past.

While it’s true home values have not reached previous levels, there are a few reasons why NOW might be the RIGHT time to sell your home. These include:

The school year is coming to an end. May and June are the best months of the year for buyers with school-aged children to find a new home so that they may be settled in before the fall school start. If you are a seller with school –aged children, you will also benefit from making the change before fall.

Interest rates are still low. Even the most studied economist can’t predict with accuracy what will happen with mortgage rates. Though there have been small movements both up and down, the rates we are seeing right now are about as low as they’ve ever been. As a seller, if you sit on the fence too long, you may miss your opportunity to get these low mortgage rates on your next home.

Prices are moving upward. Though values may not be what they once were, they are rising. Remember that prices are rising on the homes that you will be shopping for too. In other words, the “wholesale to wholesale, retail to retail” phenomenon is at play. When you buy a car and you have a trade-in, the dealer isn’t likely to give you the highest value possible on your trade-in, while giving you the lowest cost possible on the new car. He’s either going to insist you go wholesale to wholesale (both cars at lower values) or retail to retail (both cars at higher values). The same is true with real estate. While you may not get as much for your house as you once thought you could, you’ve got to remember that you will be buying a house that is at a lower cost than it may have sold for previously as well.

Demand is high, current inventory is low. A recent report stated that the average time on the market for the first half of 2013 has been 62 days. If you’re even thinking about selling your home and have held up because you fear being inconvenienced while your house sits on the market for months on end, now is a good time to sell while the buyers are motivated and the supply is low. While there are no guarantees, we’ve seen multiple offers on many properties over the past couple of months, providing back-up offers if an initial contract falls through.

If you have questions about selling your home, what you can expect from the selling or buying process or how much your home may be worth, feel free to give us a call at 770.405.1000 x222.