As the currently hot housing market starts to level out, many sellers feel rushed to list their properties while there’s still time. But should homeowners sell their house now, or wait? The answer really depends on the homeowner’s financial situation. You can review this guide on how to sell a house fast if you are faced with this decision. Anyone who won’t make enough from the sale to afford their next home should probably hold off for now. However, those in a good position to take advantage of the seller’s market while it lasts should do so as quickly as possible.
Homeowners should assess their situation carefully before making a decision. To that end, let’s look a bit more closely at each side of the coin.
Why You Should Wait to Sell Your Home
Those looking to move into a new home shouldn’t rush to sell their current one unless positive they can make enough to afford their next place. It might seem tempting to expect huge profits with the market as it is right now, but a seller’s market cuts both ways. Anyone expecting to reap big profits from a sale can also expect to shell out big money on a purchase. There are cash buyers that may be interested in your property. You must find the right homebuyers in order to sell your house for cash. It’s possible, but can be challenging.
Further considerations arise in the case of homeowners who refinanced their homes just prior to the market shift. In this case, it makes sense to take advantage of your reduced mortgage payments while taking your time to look for the home you want. Additionally, cash-out refinancing allows you to spend some time on renovations, increasing your home’s value.
In fact, any homeowner whose property needs renovation should hold off on selling for the time being. If money’s the main issue, consider applying for a home equity line of credit. Similar to a home equity loan, a line of credit doesn’t force the borrower to pay interest on the entire mortgage amount, putting far less strain on your pocketbook while you’re trying to save.
Lastly, be careful about selling a home you haven’t lived in for a long period of time. Those who have lived in their home less than two years may have to pay capital gains tax on the profit from the sale. Generally, it’s a good rule of thumb to live in a home for five years or more before selling it.
Why You Should Sell Your Home Now
Ironically, financial stress might actually be one of the best reasons to sell your home now as well. Since the COVID pandemic, many homeowners have locked into fairly low mortgage rates. While the rate on a 15-year fixed mortgage often lands around 4-5%, some have gotten loans for as little as 3%. If you can’t afford your current home, it might be time to relocate.
All others who don’t meet the descriptions in the section above should go ahead and sell. In short, sell your home now if:
- You’ve lived there long enough to build up equity.
- The house requires no extensive renovations.
- You have enough money to find another home without struggling.
The seller’s market might be fizzling out, but that just means you can sell your home more competitively than other sellers in your area. Despite the gradual leveling of demand, many sellers continue overvaluing their homes. Offer a reasonable price, and buyers will put your property ahead of those too outlandish to afford.
Homeowners shouldn’t rush into selling homes that need repairs, that they haven’t lived in very long, or that won’t make them enough to quickly afford another home. All others, however, may wish to sell your house fast while the market still supports doing so. We buy houses during the ups and downs of the market. Give us a call today if you’re thinking about selling your house now instead of waiting. Call 336-707-5223 for your guaranteed CASH offer.