Seller Considerations – The Risks Associated with Waiting to Sell

    Prices have and continue to go up. The economy and weather are improving. All the indicators are giving a green light to continued improvement in real estate. So with all the signs pointing to even brighter prospects for the future, why should a home seller list their property now? Why not wait until it gets even better?

In truth, many sellers have stopped worrying about the possible risks associated with waiting to sell, and that’s usually when a surprise event changes everything. Consider the impact of hurricanes, on real estate markets in Florida, New Orleans and New Jersey over the past years. Hindsight is always 20/20.

That’s why it’s important to keep an eye on what has been happening locally, nationally and even around the world, that could hurt the real estate market. Consider the impact on the following on real estate:

1. After years of bolstering weak economies all over the word, economic growth in China has slowed down recently. If the slowdown hurts growth in the United States, and the wealthy don’t feel as confident, will they still buy more real estate?
2. How will Russia’s continued aggression in Ukraine be dealt with by home buyers?  Doesn’t this uncertainty lead to paralysis, especially if Putin gets even more aggressive?
3. Will nuclear proliferation in the Middle East, North Korea, and elsewhere become an even bigger issue later this year? And could that have an impact on future real estate demand and prices?
4. We’ve seen reports of how mortgage applications have been dropping. If mortgage interest rates continue to rise, could this bellwether for closings be pointing out a weakness in demand that could make it more difficult to sell in the future?
5. Will the uncertainty from mid-term elections later this year impact buyer confidence as we get closer to elections?
6. How much pent-up seller demand is there? Or, how many people that have been waiting to sell until the market improved, will list their homes in the coming months?
7. How much will carrying costs, including the costs of special assessments, unexpected repairs, and insurance and tax increases impact a home seller’s profitability if they wait another year to sell?
8. Will a seller lose great investment opportunities that exist now, because they don’t sell their home until later? Shouldn’t this lost opportunity cost be factored into the cost of holding the home?
9. As taxes rise and tax deductions decline to cover the cost of the U.S. Deficit, will buyer confidence erode because buyers feel the pinch more?
10. As buyers and business owners realize the additional costs associated with rising health-care costs, will that impact what they are willing to spend on a home?
11. Will the recent drop in stock market values, and even future drops, lead to a more conservative approach to investing and real estate purchases?

 

                           There’s something to be said about selling now so you can sleep at night.