Monday, March 21, 2022 / by Glenn Musto
There are many factors that come into play when deciding to sell a property, and timing is right up there at the top of the list. It's important to work with a real estate professional that cares enough to take the time to learn about your particular real estate objectives. Just as a doctor or a lawyer should present all the facts for you to make an informed decision, look for a real estate professional that will give you all the facts when it comes to the sale of your property. If money is a consideration, carefully consider each of the five ways sellers have lost thousands of dollars by WAITING to sell their home. Whether moving up, or moving down, most people contemplating selling a property do so because they want to enjoy a better lifestyle. When is the best time to enjoy what you want?
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 property that's more expensive, 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. TIMING 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 a number of 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.