Is it time to hire a realtor in Summerville, SC?
Inarguably, we have never lived under such uncertain times, which might have some homeowners wondering if now is the time to list or to wait out the COVID-19 era until things are back on track. When it comes to home listing, you can always find a reason to wait for an ideal time. But if you wait for things to improve and are under the gun, it can leave you in a poor financial situation. If, however, you list in a hurry and the market is on an incline, you might miss the boom that is likely to follow. So how do you know the best time to hire a realtor in Summerville, SC?
Many factors can help home sellers decide when is the right time to put their home on the market. Things like mortgage rates, income, and credit histories can give some guidance to both sellers and buyers about timing. But what are the other indicators that can tell you whether now is a good time to hire a real estate agent or to wait out the storm for a bit longer?
“Although COVID-19 has altered life for the here and now, homeowners need to look at the long-term plan, why you want to move, and where you want to relocate.”
Depending on whether you can’t afford to maintain the house you are in, or you are looking to relocate, the signs are pretty much the same; when it is time to sell, it is time to sell.
Home prices in your area have continued to increase favoring the seller
The economic theory will always hold true, COVID-19 era or not; buy low, sell high. Although you might have bought your home to grow roots and build a family, you also bought it to build wealth. The key is to sell it at the most opportune time to gain the biggest profit possible.
To realize the biggest windfall, you have to understand what the value of your home is, and how it fits into the housing market as a whole. The right realtor in Summerville, SC can help you to evaluate your local market and the inventory available, to decipher price trends that will most likely outlast the current situation.
What sellers want to pay close attention to is the supply and inventory of homes in their area. It is a good guide as to how long homes in your locale sit before they sell. If indicators show that the market near you drops below three months of inventory, then that is a sign of advantage for sellers. And it is also a predictor that your home will be in high demand, giving you the best opportunity for the most profit.
The next statistic that you will want to pay close attention to is the national index, and the ten-city and twenty-city composite trends. Your home is an appreciating asset, which means that it will gain in value for the long run, but it will fluctuate both up and down in cycles. If the housing market is stable, homes will appreciate 2-3%. Therefore, if you have owned your home for five to ten years, you can probably be assured of a moderate price gain.
Price growth, however, is different. Some markets, over the past two years, have been red-hot, soaring as much as 15-20%. Analysts are predicting that 2020 will also come with a “bonus” due to the past several months.
The take is that you want to hold onto your home as long as you can while the ride up is good, but you want to make sure that you sell at the pinnacle to reap the profits before housing prices begin to decline.
Buyer Behavior and Seasonal Trends in Local Markets
Statistics show that you can increase the profits of your home sale by as much as 75% and reduce weeks off of the selling time of your home by getting the timing of listing correctly. For many markets, spring is the best time to list your home. But that is not necessarily true for all markets. Some markets profit from waiting until the fall or even the winter, depending on when the competition is at its highest.
So it is important to not just take the adage of the spring market being the best time to list and ignore other factors.With Sea Turtle Properties at your side, you can analyze your local market to find the best time to sell your home.
Every Month Paying Your Mortgage is a Stretch
Many expenses come with homeownership. Every month you have to consider things property taxes, private mortgage insurance, home insurance, household maintenance, landscaping, utilities, and all the other costs that can start to add up. The average home in the US costs about $360,000, which means that the average homeowner is paying anywhere from $1,200 monthly, or $14,500 yearly, plus other expenses.
Financial analysts advise setting aside a minimum of 1-3% of your house’s purchase price yearly in a savings account for home repairs that can be costly and unexpected. If your savings are depleted, and you are having a hard time paying the minimum, you might be cash poor. Homeowners who spend more than one-third of their monthly income on housing alone, are overextending themselves.
If you are delving into your savings; things can decline quickly. It is much better to list your home now, biggest profit or not than to wait until things get dire, and you are in financial trouble.
You are Outgrowing Your Home and Have the Resources to Move up
Being able to buy a better home or to relocate are the number one reasons that people list their home. Homebuyers who can use the proceeds from the purchase of their previous home to apply to a new purchase are in the best position. Before you decide that now is the time to take on a larger mortgage, make sure that you are being realistic about wins and losses.
Ask yourself things about whether you will have enough equity to put down a healthy down payment, or if you can even break even when financing a bigger, or nicer, home. If you can put 20% down, you’ll be able to avoid additional expenses like private mortgage insurance, and your payments can usually be the same with a newer house than the one you are currently in.
According to statistics by CoreLogic, after analyzing global home prices, between the third quarter of 2017 and 2018, the average US home equity gained about $12,000, with some locales like Nevada and California being much higher. How much has your home gained? Subtract the estimated market value of your home from the status of the balance of your mortgage. That will tell you how much equity you will have to walk away with. And it will also forecast how much you will likely have to apply to a new mortgage.
You are Having a Difficult Time Keeping up With Maintenance
Although 90% of retiring homeowners want to downsize, most wait too long to do so. The National Association of Realtors estimates that as many as 67% of homeowners move between the ages of fifty-three and ninety-two, and they do so due to health concerns. If you are someone who is clinging to the memories associated with your home and dread relocating, the clock is ticking and there might never be a better time than the present. It is a whole lot easier to move when you are prepared and healthy enough to do so. And if you allow your home to deteriorate due to not having the resources to maintain it, it will be worth way less when you do end up putting it on the market.
If you are getting older and finding that you don’t have the strength, energy, or desire to maintain your home like you used to; it is time to list and move along to a home that is less work.
Signs You Should Wait it Out
If you do have the time to wait and see how things bounce back over, these are signs that you might want to hold off.
A Market Lull Could Lead to a Lower Selling Price
When the market is at a lull, it takes home sellers longer to sell their home. The longer your house sits on the market, the less you will probably get for it. If the market has more than six months of inventory, that could indicate that it is a buyer’s market. A buyer’s market might not only drive your home price down; you might end up paying more in maintenance costs. So it is best to ask your realtor in Summerville, SC what the home inventory in your locale is to decide whether it is time to sell.
You Haven’t Built Much Equity
If you have the opportunity to wait, you don’t want to sell when the price of your home is upside down, meaning you owe more than it is worth. So make sure to take the time to run the numbers and find out where you stand financially.
You Can Benefit From Using it as a Rental Property
When the market isn’t conducive to a seller’s market, you might want to consider other options besides selling. Without immediate pressure to sell, renting might be an excellent way to gain a little income monthly, while also building equity. If during the interim the market still doesn’t go up, you will still be chipping away at your mortgage at someone else’s expense. And once you wait it out, you might be in a better position to sell down the line. Sea Turtle Properties also offers property management and can help you get your rental leased!
The Two-Year Use Test Doesn’t Exclude Paying Capital Gains
Homeowners who have not lived in their home for two to five years might have to pay home taxes upon selling. To avoid paying capital gains taxes on your main residence, you have to live in it a minimum of two years, sometimes up to five. Therefore, if you just bought and moved into your home, you might want to hold onto it for a bit longer and find other options than selling.
You’re Just Not Ready
When you raise your family and live comfortably in the same home for twenty or more years, it can be emotionally taxing to leave. The best way to gauge if it is time to move along is to consider your financial situation and try to make the best choice to put you in a better position going forward. It is probably never going to be easy to leave the past in the past, and if you have time to wait, do. But do consider that there might be a trade-off to leaving your memories behind like building new one’s beach side or hitting the mountains.
You Don’t Have the Resources Right Now to Improve Your Home to List
Sellers want to get the most for their homes possible. Your Summerville realtor’s advice is instrumental in helping you repair and fix up your home to present it in the best light. A home that has a lot of issues, maintenance-wise, might be devalued unnecessarily, and lead to a lesser selling price.
You can sell your home “as-is,” but you will probably have to give a significant price discount. If the market is already in a lull and conditions aren’t right, you might want to hold off, make the necessary repairs as you can, and then list later on when conditions are riper.
So… Is now the Time to Hire a Realtor in Summerville, SC to List Your Home?
Finding an ideal time to list your home is dependent on many factors both personal and financial. If you don’t have the resources to keep up with the mortgage, then you might not have a choice. Or, if you are getting to a point where selling is optimal regardless of housing conditions, don’t wait too long and be under the gun.
Either way, the best way to decide is to hire a realtor in Summerville, SC to walk you through your financials, current market indicators, and to find what the best options are for you personally. Call Sea Turtle Properties today to discuss your options with a local agent!