To Sell or Not To Sell
Are you thinking about selling and moving but concerned about today’s market?
Here are some things to think about.
- If the local market is hot then you will probably be able to sell you home quickly. It’s likely that there will be lots of competition and the homes will be priced high.
- If the local market is cool (slow) then your home will probably take longer to sell. However it will be easier to find a new home because there is less competition and the prices are more reasonable. So you will be able to get more house or a more desirable for the money.
We are currently in a hot market which means if your home is priced right it will go under contract very quickly and you will likely see multiple offers. Interest rates are GREAT probably better than what you are currently getting on your mortgage now. Housing prices have increased across the board in the Denver area, reaching an all-time high according to Case & Schiller. We have now topped prices previously attained in 2006, the last time the market peaked. The interest rates are one of the driving factors for this and the other is low inventory and strong demand.
What do I mean by “low inventory”? In May 2010 the inventory (number of homes on the market in the Denver Metro area) peaked at 23,450 available residential properties and since then the number of homes for sale has be decreasing pretty steadily. In May 2012 we had about 10,254 homes on the market and in May 2013 there were 8,214 homes available.
Everyone’s situation and concerns are different please call me to discuss your situation and selling your home. The advice is free and there is never any obligation.
The following is a list of things to consider when your thinking about selling. It was put together by the National Association of Realtors.
Does Moving Up Make Sense?
These questions will help you decide whether you’re ready for a home that’s larger or in a more desirable location. If you answer yes to most of the questions, it’s a sign that you may be ready to move.
1. Have you built substantial equity in your current home?
Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation improved?
If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood?
The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job or live in a better school district.
4. Are there reasons why you can’t remodel or add on?
Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market?
If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
6. Are interest rates attractive?
A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.