5 Ways It Could Cost You and Why You Don’t Want To Wait To Put Your Property On The Market
It might be more convenient to wait to put your property on the market for various reasons. If you knew that by waiting, you could be costing yourself $3,000 or more, would you still want to wait? Part of the reason you hire a professional is to provide you with the facts so you can make an informed decision. So here are 5 reasons you don’t want to wait or you could be to late for the best deal.
Over history, interest rates have fluctuated up and down. No one can guarantee interest will be in the months to come. Currently, we know what the rates are. If rates increase to much, buyers are knocked out of the marketplace. The pool of buyers in the marketplace decreases as the interest rates go up. Which then in turn changes your chances of finding a buyer willing to pay your price. You can’t predict what’s going to happen with interest rates. Nobody can. There is an advantage in dealing with a known set of circumstances.
New Property Could Cost More
If you’re buying a new property that’s more expensive, you could cost yourself plenty. For Example, let’s say you’re selling a $100,000 property and looking to buy a $150,000 property. If both properties appreciate ar the same rate of 3% over the next 6 months, you gain $3,000 on your existing property. However, the $150,000 property will now cost you $154,500. A net loss of $1,500.
Time Is On Your Side
The very fact that you have time on your side could save you thousands. Many sellers that have waited have put themselves in a “Have to” sell situation, and have to accept an offer for less than what they wanted. The fact is when you have time on your side, you won’t feel pressured to accept an offer that’s less than what you want.
Supply And Demand
Right now in the marketplace there are a certain number of buyers and a certain number of sellers. We are currently dealing with a known set of circumstances. There is no guarantee that in a few weeks, or a few months, there might be fewer buyers or more sellers. Either way, by waiting, you are taking a gamble with accomplishing your real estate objectives.
Currently we enjoy a number of benefits for owning property. See your accountant for tax advice. Should the federal government decide to change capital gains or interest deductions, you could risk the current tax advantages which we currently enjoy. The only thing that never changes is change itself.