With the volatile real estate market of recent memory, its no wonder homeowners considering selling their homes struggle with the decision. Many questions, fears and uncertainty surface even if these potential home sellers really need or want to unload their home or property.
But when you’re California REALTORS like we are, its not hard to see the green light on the housing market. This is a quick list of the reasons why now is a perfect time to sell your home:
1. Inventory! This has been going on for months now, but the number of houses actually available for sale have dropped so dramatically that home buyers are literally lining up to make offers on homes for sale. There are even some home buyers camping out in front of homes that soon will be for sale just to make an offer! Here’s a link to just one such story.
2. It’s springtime! Here in Southern California, the housing market season could really be defined as year-round, but even here home sales tend to be more robust during spring and summertime months. This can help you sell your house faster and for more money!
3. Interest rates are at an all-time low! Don’t think that interest rates affect you the home seller directly? Consider the fact that a lower interest rate helps a buyer afford more home and sales price. Plus, if you plan on financing another home yourself, you will be able to take advantage of the low interest rates too!
4. Escrows can fall out! In this seller’s market, if you lose your buyer, the worst thing that can happen is putting the home back on the market, maybe even for a higher sales price! In this scenario yes it will cost you time and maybe carrying costs for owning the property for a while longer, but the plethora of buyers will not let your home stay on the market too long if its adequately priced.
5. Home prices are going up! Many home sellers AND buyers are surprised by this, but being in the real estate business it makes perfect sense. The housing market is just like any other market, like the stock market for example. Prices rise and fall based on market supply and demand. The Housing market saw a peak in prices in 2006 and 2007, demand evaporated and the housing crash happened. Economists are still arguing about when the bottom, or trough, of prices of the housing market occurred, but late 2011 and 2012 seems to be the market bottom. Here’s a story from Reuter’s about rising home values.
6. Repairs will be less expensive! Jobs are still more scarce than they were five years ago, and contractor’s are more willing to offer competitive bids on repairs and construction work. This can save you money if you need to make any repairs to sell or improve the value of your property before you put it on the market. And if your home is called out for any repairs by inspector’s during the escrow process you may not have much of a choice but to do the repairs.
7. Home builders are starting to build! You know what that means…. More homes for sale, more inventory, less buyer competition per home, less power a seller has during a sale!
8. Buyer contributions! When inventory is low and buyers are fighting each other for available homes for sale, it tends to make them contribute more to the sale, and ask for less seller contributions. If your home needs repairs during escrow, a buyer will be more willing to pay or contribute to the repairs. They are also less likely to ask or insist that a seller contribute to buyer closing costs and/or down payments. This is very good for a home seller’s net sale profits!
9. Short sales are becoming more and more streamlined every day! Banks are finally realizing that a foreclosure costs them more than a short sale. Some banks are even offering up to $30,000 to distressed homeowners to short sale. If you’re a potential short seller, obviously this is good news for you and your short sale. If you’re a standard seller, this again means more and more seller competition as time goes on for your standard sale.
10. Upgrade! This is your chance to upgrade to a bigger or better home without paying any potential higher home prices that will undoubtedly follow today’s real estate market. Some sellers say:
Well, if I sell now to buy now then I’m not saving anything because I’m selling low too.
That may be true, but the percentage of increase will leave you on the winning side. If you sell a home for $100,000 and buy a home for $200,000 now, and then there’s a 10% increase in values over a certain time period, the first home would have a market value of $110,000 and the second home would be worth $220,000. You just increased your equity by $10,000! What a sweet deal! And let’s not forget the current low interest rates as well!
So are you ready to sell?