Best Time to Sell

Home sale prices today are certainly better than they were a few years ago. And there is a case to be made for waiting a few more months to get an even better price. The variable that can negate this theory is if mortgage interest rates go up. Interest rates are a big part of a monthly payment for a buyer. A 1% rise in the rates affects a month mortgage payment more than a $10,000 difference in sale price.

Trying to time selling your property at the top of the market is rather like trying to time the stock market. The first thing you should do when deciding if this is the right time to sell your home is “How much is it costing me to stay in a home I don’t want?” And even more important is if you are waiting to “sell higher” in order to buy a replacement property; that property is rising proportionately also. And more importantly is the rise in mortgage rates which can easily wipe out the additional profit.
Consider what the new home will offer your family. Life is too short to put off what would be best for your family. That cost cannot be calculated in dollars.

Although in this current market, it is easier to sell than buy; sometimes a family has already moved to their new home before selling their old house. Properties that are priced right and shown in their best light sell quickly. The carrying costs of holding on the old house may very well negate a higher future sales price.

Consider what the new home will offer your family. Life is too short to put off what would be best for your family. That cost cannot be calculated in dollars. Although in this current market, it is easier to sell than buy; sometimes a family has already moved to their new home before selling their old house. Properties that are priced right and shown in their best light sell quickly. The carrying costs of holding on the old house may very well negate a higher future sales price.

The best part of the rising housing market price news is that many homeowners who were in a negative equity situation, are now realizing a better value for their homes. Many will now be able to sell without bringing money to the table or having to go through the short sale process. However, the more homes that are listed, the bigger the inventory. This almost always slows down the rising house prices.
Although we had a rather nice upward correction in the market over the past 18 months, prices have stabilized here in South Florida and we are almost back to a normal growth model of 4% per year. As more homeowners are able to sell and break even or even make a small profit start listing their homes, the great deals – and investors – will start to disappear.

Interest rates are still at historically low levels. As the economy normalizes and the unemployment rate decreases, the Federal Reserve will be able to raise rates and the experts believe they will move quickly.

So if you are thinking about selling, there are many considerations to prioritize in order to make the best decision for your family.