Deciding to sell your home can be a very stressful decision to make. Something that can be frustrating is trying to answer all the open questions on how to best go about the process. One thing you may wonder about is when the right time to put your home on the market is. Right now might actually be the best choice. Here are a few reasons why it may be best to sell your home now as opposed to later.
Interest Rates Will Rise
Interest rates have been at historic lows for the past several years. This economic policy was in put in place to help curb the effect of the 2008 financial crisis. However, the economy has been steadily growing since then, and the markets have especially taken off after the election of President Trump who has promised policies to benefit businesses and the economy such as slashing regulation. There is no doubt that the fed will choose to raise interest rates in the near future. It will also probably happen multiple times.
While this is obvious bad news for home buyers who will have to pay more in interest for their mortgages, it is also bad news for home sellers as well. Increasing interest rates usually means home prices will have to adjust lower to make up the difference for consumers. It’s the law of demand. This means making less money for your home on the open market. Selling now, however, may allow you to avoid some of the negative impact of future interest rate increases. Realtors like Roger Deines Real Estate Group ReeceNichols suggest using a mortgage calculator to determine how a change in interest rates could change the price of a mortgage.
You Will Avoid Negative Events
No one knows what the future may hold. While you may be thinking about putting off placing your home on the market for several months or even a year or more, that may not end up being a wise choice in retrospect. You may in the future encounter a negative event that could cause your home to fall in value.
This could be an event that affects the entire market like a recession. Alternatively, it could be an event that affects your neighborhood like an increase in the crime rate. It could also be an event that only affects your home in particular. For example, your home may develop a mold problem next spring. If that occurs, your home will drop in value significantly. Selling earlier helps hedge your risk in regards to all the possible things that could go wrong.
Overall, don’t put off selling your home for a long period of time if there is no need to do so. Selling earlier can mean getting back a larger portion of what you originally invested into the property as well as a significant profit.