With the end of the year fast approaching, it’s time to ask the question of whether it’s worthwhile trying to sell your home now. Could this be a waste of time? Will the house stay on the market and become shopworn? Should I remove my real estate from the market for the holidays? Will the real estate / home-sale market be better for sellers in 2012?
The BEST question you need to ask yourself is: Are you emotionally prepared to sell this real estate? Selling a home in general is a challenge for most sellers, although some markets are better than others. Unless you bought the real estate more than eight to 10 years ago and preserved the homes equity, you may not be able to sell for enough profit to pay off the mortgages secured against the property and the other costs of selling.
For sellers who have no additional assets, a short sale or foreclosure of the real estate may be the only option. If so, first look into government programs that might help you out financially. Also, talk to your attorney and tax adviser about your best options in these instances.
Sellers who have the resources to make up the difference between the sale price and the amount they owe on the home need to ask themselves if they are willing to pay the additional cash in order to sell and move on.
There are a few reasons why you might prefer bringing cash to closing. One is that your credit will not be negatively impacted, as would be the case with a short sale or foreclosure. Another would be that many buyers shy away from short sales because of the lengthy and uncertain process involved in this type of home purchase.
Another thing to consider is the condition of your home. Is the real estate ready for the market? The most salable homes are those that are in move-in condition.
Before racing to the hardware store, ask your Realtor about how much competition there would be for your home if you put it on the market before the holidays. Some areas are shy on inventory of good homes on the market. If so, now could be a great time to sell in those markets.
HERE’S A HOUSE HUNTING TIP: The supply vs. demand ratio plays a significant role in the health of a local real estate market. No matter what is said about the housing market nationally, it’s the local picture that tells the tale in terms of the possibility of selling your home at any given time.
Most sellers don’t put their homes on the market during the last or first couple of months of the year. The inventory of homes for sale will usually dwindle during the winter months. Interest rates are usually low. So, if there are buyers in your local market, you may be at an advantage selling when most sellers are waiting till the summer or spring.
Some sellers feel that if they’ve waited this long to put their property up for sale, they should put the process on hold until spring and get the house ready to sell in the meantime. Certainly, it’s not a good idea to put your house on the market until it looks great and is move in ready. But if you and your house are ready to sell, move ahead.
The market in general tends to slow down over the holidays. But rather than pull your house off the market and miss a likely prospect, change the showing procedures to require advance notice. And enjoy your holidays. A sale before year end could be a great holiday present for yourself and your family.
There is a lot of demand, on both the buyer and seller sides of the equation. Sellers have been waiting for a better time to sell their homes. Buyers have been waiting for more quality inventory and a sense that prices have bottomed or are close to it.
IN CLOSING: Recent projections call for another five or so years of bouncing along close to the bottom of this real estate market cycle. Although it should be mentioned that many experts believe that the big price declines are behind us.
