on Wednesday, October 20th, 2010 at 3:29pm.
5 Reasons You Should Sell Your House TODAY!
your house in today’s market can be extremely difficult. It is for that
reason that every seller should take advantage of each and every opportunity
that appears. Each fall, such an opportunity presents itself. This fall, that
opportunity may be just too good to pass up.
Below are five reasons you should consider when pricing your house to sell
in the next 90 days. Meet with your real estate agent and mortgage professional
today and see whether it is the right move for you and your family.
1. Entering this time of year, the buyers are more serious.
We all realize that buyers are not quick to pull the trigger on the purchase
of a home today. There is no sense of urgency with the supply of eligible
properties at all time highs. However, at this time of year, the
‘lookers’ are at the stores doing their holiday shopping. The home
buyers left in the market are serious and are more apt to make a purchasing
decision. Less showings – but to more motivated purchasers.
2. If you are moving up, you can save thousands.
The Chicago Tribune stated in an article last week that sellers who want to
‘trade up’ should act now:
It could be a bigger house, different neighborhood or a better school
district, but it comes with a higher price tag. Do the math; this might be the
A home that was once worth $300,000 may now be worth $240,000 in a
market where prices have fallen 20 percent. Wow, you think, the seller is
taking a bath. But that seller may also be a prospective buyer who wants a
house that once was valued at $400,000. With an equivalent market drop and a
realistic listing price, that house may now sell for $320,000. So, in effect,
the person is losing $60,000 on the sale of one home but coming out ahead
$20,000 on the purchase of another.
Keep in mind the spread may be even greater. There’s a smaller
pool of potential buyers for more expensive homes, so sellers may be more
willing to cut their price to get a deal done.
3. Interest rates just fell again – to 4.19%.
Professor Karl E. Case, the founder of the Case Shiller Pricing
Index in an article in the New York Times
last month actually did the math for us:
Four years ago, the monthly payment on a $300,000 house with 20 percent
down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000
house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent
down would carry a rate of about 4.2 percent and a monthly payment of $833
… housing has perhaps never been a better bargain.
4. You beat the rush of inventory that is coming next year.
Every year there is an increase of inventory which comes to market from
January through April as homeowners put their houses up for sale in preparation
for the spring market. As an example, here is the number of listings available
for sale in each of those months in 2010.
January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell
5. You have less ‘discounted’ inventory with which to compete.
This year, sellers of non-distressed properties have been given an early
holiday present. With banks declaring a suspension on the sale of many
distressed properties (foreclosures), there has been a large supply of
discounted properties removed from competition. No one knows how long this self
imposed moratorium will last. However, while it does, every homeowner has a
better chance of selling their property.
If you are looking to sell in the near future, there may not be a more
opportune time than this fall. Serious buyers, great move-up deals and less
competition from foreclosures creates the perfect selling situation.
Don’t miss it!