When Not to Sell in a Seller’s Market

Trends in real estate can always lead us to thinking what we want to do is a good idea, but that isn’t always the case. Read these tips before you follow through with your “genius” idea.

The current market states that housing prices are on the rise yet again, and my guess is you are getting that itch to sell. There are several reasons why you shouldn’t scratch that itch and sell in this seller’s market.  Stay put and read this article before making any rash decisions.

The Return from Distress

If you have been living in a distressed neighborhood and finally hear the good word that home prices are increasing, this brings hope to your heart. Yes they might be increasing, but they could very well still be below the norm. So if your house fell 30% and the median home price increased 14%, then you’re still down. Look at the national real estate market as a whole and decide if the appreciation will likely continue or not.

It’s not about selling when it’s the best time to, it’s about selling to recoup the cost of the house and then a little more. Don’t get greedy and lose sight of your properties potential by some appealing numbers.

Assessing your Rental Market

Check out your local renters market before you sell. Rentals are on the rise because housing is becoming less affordable, and people are moving around a lot more for their jobs. Since rental rates are climbing, maybe this is your next option. Sit down with a real estate professional and see if a property like yours is worth renting out and what you could gain from it.

A Combination Approach

Sometimes it’s best to rent out your current home while you buy your next home, but only if you don’t need to proceeds of your last home to go towards the new one.  Be prepared to become a landlord though. You might have to come by at 6 in the morning to unclog a toilet or make a ventilation repair. Do the math and see if it could be worth your time and effort to do this.

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