The Chicago Tribune ran a an article regarding reasons to list this fall and winter. After “Selling this Fall, What to do now…” I thought this would also aid those of you thinking of selling.
- You really Need to Sell. It could be a job transfer, or it could be a need to have less house or a smaller mortgage payment at a lesser interest rate. A homeowner who has been in a property more than FIVE years and who didn’t tap into a large home equity line of credit or a cash-out refininacing, still has a chance of coming out ahead. Keep in mind that buyers in the market during the fourth quarter typically are serious buyers.
- You want to Trade Up. 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 right time. 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.
- You want to live in a worse-hit market. It depends on the debt load carried on the current residence, but if you’ve dreamed of moving to a “sunshine” state like Florida, Nevada or California, your money will go far.
- You’re the new supply. There’s an abundance of properties that have been sitting on the market six months or more, many of them with multiple price reductions. A home that has just come on the market, particularly if it’s priced competitively, will get the attention of serious buyers tired of the existing inventory.
Chicago Tribune, Friday, October 15,2010