The decision on when to sell your current property can be a tough one because there are so many options out there- should I list my property now? Should I wait until spring? Are there enough potential buyers? What are the market conditions looking like? Should I seek the help of a real estate agent? There are a lot of factors that come into play when making this decision. You need to consider your personal situation and what you want for the future in order to decide if it’s a good idea to sell your current property in the current conditions.
You want to make sure you choose the right option for your family members and their lifestyle needs. Waiting too long could also result in not being able to afford another house because of a high selling price or low inventory. If you’re looking for a quick sale and a cash offer, then it may be better if you wait until more potential buyers enter the market, or seek out the help of a real estate agent. So, the question that many homeowners ask themselves. Is it best to sell my home now? Or should I wait and see what the market does in the next year or two? There are pros and cons of both options, but here’s some information about which option is a good time for you.
Current Housing Market
The National Association of Realtors reported that in the second quarter, homes that sold during June were on the market an average of 94 days before they found buyers. This was a slight decrease from 95 days in April and May and three more days than last year at this time. The number reflects how buyers are having to work harder to get their dream home due to all the housing inventory on the market.
According to realtor.com, a website devoted to real estate buyers and sellers, it is estimated that 2 million homeowners will be displaced by foreclosures over the next five years as well as 3 million new buyers entering into the marketplace looking for homes of their own.
Every month, there is a new buyer’s market or seller’s market within the overall housing market.[1] This means that sellers are more likely to get the price they want for their home in a buyer’s market. In a seller’s market, buyers are the ones who have the upper hand and can negotiate prices lower than what would be normal in other months.
A buyer’s market is a time when there are more potential buyers than sellers in the real estate market. There are many reasons why this could happen, including an increase in population, low mortgage rates, or economic growth which leads to increased demand for housing inventory. This forces prices down and means that sellers have less bargaining power because of the surplus of housing inventory available. A seller’s market is the opposite situation, where there are fewer potential buyers than sellers, and therefore those who do want to buy need to compete with each other for homes in the current market. They may also be willing to pay higher prices as well since they’re competing against so few people.
Additionally, many homeowners are faced with the dilemma of selling a house with a current mortgage balance.[2] The first thing to consider when deciding whether or not to sell is whether you can afford to leave this amount of debt on your credit report and what it might do for your credit score. As the housing market continues to rebound, it is important for homeowners and real estate agents alike to stay informed of current market conditions.
Market Predictions in Real Estate
A market forecast is a report that estimates the current state of the housing market in a specific area. It’s important to get one before you decide to sell your home because it can help you plan and price accordingly. A real estate agent will typically provide their clients with this information and make recommendations for what they should do next based on the market data provided from the report. Market forecasts and market data are also helpful if you’re looking at buying a property, as they’ll tell you what homes have sold recently so that you know how competitive prices are in your target area. If there has been an increase in demand or housing inventory, the selling price may be higher than usual.
On the other hand, you may have heard the term “market predictions” thrown around in articles or conversations, but what does that really mean?[3] Does the market data provided only describe the market and how it is doing at this current time? Or does predicting the future of housing prices actually tell you something about where they are going in the next few years.
The housing market is always fluctuating, with peaks and valleys throughout the year. The three things that can really impact your sale are location, timing, and selling price. If you have ever thought about getting out of the industry because of low income in recent years- don’t worry! There is still hope for everyone, especially if you’re willing to be flexible with these 3 factors no matter the market conditions.
Reasons to Not Sell Your Current Property in the Real Estate Market
The truth is that there are plenty of disadvantages of selling a home with a real estate agent now compared to waiting, and one of them is high competition. With high competition comes the best selling price for the home because there are more sellers than potential buyers. And what happens when there is high demand and the selling price for the home gets lower?
When the competition becomes too high sellers will often have to sell at bottom-dollar prices, sometimes even less than what the home is worth. This can be a very bad real estate investment for those who bought during the high mortgage rates era. Even as the current mortgage rates rise, all you have to do to get a home sold quickly is list it at the bottom of the market. The only way you can sell a home quickly now compared to before is if you list it at the top of the market and sell to the maximum number of potential buyers.[4]
But this brings us to another disadvantage of selling a home at this time, and that is the price. When the competition becomes so high, the price goes down significantly from what it was when the market started. So you are not going to get the full value of your home from listing it at the top of the market. The competition has driven the prices down and the competition from other sellers makes the total sale price go down even further. And this means that it is harder to sell a home now than it was before in this high competition market.
Reasons to Sell Your Current Property in the Real Estate Market
Deciding whether or not it’s a good time to sell your home in today’s market is not an easy task. In fact, many homeowners do not even have a clue as to how much their home is worth, and seeking the help of a real estate agent doesn’t change things. One of the main reasons to sell your home in the current market is due to all the benefits of a cash buyer. The biggest benefit of a cash buyer is that the offer will take care of any closing costs while getting your property off your hands as quickly as possible. This means that the homeowner will be left with almost no financial worries once they sell their property.
As the economy suffers and the unemployment rate gets higher, the demand for property decreases, which is one of the best reasons to sell your home in the current economic environment to a cash buyer. It’s no secret that selling a home is difficult, but whether you’re selling or buying, it’s easy to get overwhelmed by the process. One of the best ways to make this whole ordeal easier? Find someone who can help!
Cash buyers are people who purchase homes without the need for financing. This is a good idea because it eliminates the costs associated with mortgage rates and banks, which can be quite high in today’s market. You may also find that a cash buyer will offer more money than multiple bid offers that have been received, or even what would have been offered by a traditional mortgage lender. Whether you’re looking to sell quickly or want to maximize profits, a cash buyer might just be the perfect solution.
Summary
When you’re deciding whether to sell your home or wait, there are a lot of factors to weigh. Whether you have an emotional attachment or not, it’s important to think about timing and making the right life decision. If the market is going up and you want a cash offer, now might be the time! By seeking out the help of real estate professionals, such as the Simple Sell Home Buyers team, you can sell your home for cash in as little as one day.
At the end of the day, selling your home to cash buyers is a good idea if you’re looking to get top dollar for your property with as little hassle and time as possible. With New York’s most trusted cash home buyers, Simple Sell Home Buyers can take care of everything for you! We are committed to helping our clients by offering a fair, no-pressure, and no-obligation cash offer through our three-step selling process. It’s tough sometimes in the housing market but try your best to stay rational and make the best life decision that’s right for you!
Image Credits
Pexels / April 8, 2021
Pexels / December 14, 2020
Pexels / September 14, 2017
Pexels / May 18, 2021
Pexels / May 21, 2016
Endnotes
[1] “Housing Market Predictions 2021 & 2022: Crash or Boom?.” 16 Jul. 2021, https://www.noradarealestate.com/blog/housing-market-predictions/. Accessed 22 Jul. 2021.
[2] “Can You Sell Your Home If You’ve Still Got a Mortgage? – HomeLight.” 20 Aug. 2020, https://www.homelight.com/blog/sell-home-with-mortgage/. Accessed 22 Jul. 2021.
[3] “Housing Market Predictions 2021 & 2022: Crash or Boom?.” 16 Jul. 2021, https://www.noradarealestate.com/blog/housing-market-predictions/. Accessed 22 Jul. 2021.
[4] “Top 9 Steps to Sell a House Fast | Zillow.” https://www.zillow.com/sellers-guide/sell-my-house-fast/. Accessed 22 Jul. 2021.
