The temperatures aren’t the only thing cooling this time of year. Historically as we head into the winter months, the real estate market quiets down as it bides its time for the buyer demand that resurfaces in the spring.
There are particular advantages for putting your home on the market during the fall and winter, however. You don’t have to wait until the temps warm up again to make your move. Here are a few reasons why:
Hibernating Tire-Kickers - Only those who are serious about buying are making the rounds in the housing marketplace right now. You won’t have to be inconvenienced by those who just want to walk through your home and look around.
Competition at Bay - You will have far less competition this time of year. Because supply is limited, buyers will have fewer choices and your home will likely get more showings. If you wait until the spring, all the other potential sellers will begin competing for buyers’ attention.
Speedy Transactions - Due to the sheer number of new mortgage and refinance requests in 2013, the process of moving from contract to closing has been lengthy. During the quieter winter months, it will be easier to get from start to finish in a minimum amount of time, eliminating frustrating delays.
Rising Prices and Rates - If you’re selling your home, you’re most likely looking to buy somewhere else. By waiting an extra 6 months to put your house on the market, you’re taking the risk that home prices and mortgage rates will continue to climb. It’s predicted that home prices will appreciate by over 25% by 2018.
If you want to get your house on the market now before the holidays, give me a call. I’ll be happy to help you get your home listed.
Read more about this topic on the KCM blog.
While both Realtors and sellers typically like as expedited a process as possible (ie, a sale within a month), there are important factors to consider during the home sale of a senior.
According to the National Association of Realtors (NAR), currently 1 in 4 home sales involves an adult over age 65. In fact, as many as 1 in 14 home sales involves a seller over the age of 75. These types of sellers have often lived in the same home for 40 years or more, meaning that they’ve accumulated lots of possessions and also that they’ve built up a great deal of emotional attachment to their home.
What happens if an octogenarian couple puts their home on the market and it sells quickly, complete with a contract that says they must be out in 30 days? Have they decided where they will move yet? Do they realize how long it will take to sort, toss, pack, or otherwise disperse their belongings? Have they begun letting go emotionally? Read more…
The recent recession has knocked the confidence out of some Americans who believed that owning a home is the way to build wealth. Is homeownership really the great financial investment that it’s been made out to be?
Rather than making subjective claims, let’s look at some of the objective results of a recent study made by the Federal Reserve which evaluated the net worth of American families:
- The average net worth of an American family is $77,300.
- 61.4% (or $47,500) of that net worth is in home equity.
- The average American homeowner’s net worth is $174,500, while the average American renter’s net worth is $5,100.
- A homeowner’s net worth is over 30 times greater than that of a renter.
So while real estate may have taken a hit in recent years, it is still considered one of the more promising ways for an American family to build wealth. Since you need to make a housing payment each month, whether for rent or mortgage, why not invest long-term to help strengthen your net worth?
With rents skyrocketing across the country and home prices still at great values, it may make more sense in some situations for sellers to rent their homes for a while. This would allow them to take in some good rental income while biding their time so they can sell when home prices may be even higher.
But there are some potential headaches that come along with becoming a landlord. Make sure you think things through and do some homework before taking in a tenant.
According to KCM, here are 10 questions you should ask yourself BEFORE you actually rent out your home:
“1.) How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? (This happens most often during holiday season and back-to-school time when families with children have extra expenses).
2.) Because of the economy, many homeowners can no longer make their mortgage payment. What percent of tenants do you think can no longer afford to pay their rent?
3.) Have you interviewed a few experienced eviction attorneys in case a challenge does arise?
4.) Have you talked to your insurance company about a possible increase in premiums as liability is greater in a non-owner occupied home?
5.) Will you allow pets? Cats? Dogs? How big a dog?
6.) How will you actually collect the rent? By mail? In person?
7.) Repairs are part of being a landlord. Who will take tenant calls when necessary repairs arise?
8.) Do you have a list of craftspeople readily available to handle these repairs?
9.) How often will you do a physical inspection of the property?
10.) Will you alert your current neighbors that you are renting the house?”
Historically, renting out residential real estate is a great investment opportunity – but it’s important to be prepared for its challenges.