2014 Seller Considerations – 4th Quarter Considerations
It’s been said that the best time to sell is when everyone else is buying, and people buy when conditions are good. In other words, the better the market and economic conditions are, the more buyers will commit and the more likely they are to be willing to spend more. The greatest challenge for home sellers it to take advantage of the good news before something happens that adversely affects their ability to sell at the best possible price. Every seller must recognize that all windows of opportunity eventually close.
Let’s look at the key factors that are benefiting home sellers at the present time:
- The mid-term elections are over – Uncertainty surrounding the outcome of elections usually causes paralysis. Why make an important buying decision when you don’t know what the future holds? It’s an ideal time to sell now that the uncertainty over the results of the elections has ended.
- Housing Inventory – Inventory levels are still reasonable, but recently, there has been a jump in the number of homes for sale. As inventory levels increase, buyers have more options and are less likely to pay a premium.
- Weather Conditions – For home sellers located in warmer climates, recent cold weather and snow in northern markets are motivating many northern residents to purchase homes in Florida and other key markets.
- Interest Rates – Interest rates are still at record lows, but the recent drop in unemployment and an improving economy despite the final completion of The Fed’s QE2 program, may lead to higher interest rates sooner than most people think.
- The “Wealth Effect” – Record high stock market prices have provided an emotional boost to major purchases. When investors feel like they’re richer, they are willing to spend more money.
With all the positive news reported during the past quarter, it’s difficult for many sellers to realize that bad news may be just around the corner. For example:
- Will taxes rise to fund our $17 Trillion deficit?
- Will there be a correction in the stock market?
- Will interest rates rise?
- Will geopolitical problems get worse?
THE TIME TO SELL IS NOW!