The Best Reasons To Sell Now

The activity of buyer’s looking to buy a home at this time of the season increases.

If you’re contemplating selling your home - now is a great time. Most home buyers start to look for a home in the spring, around May. That’s normal - but in this market, as we know it, NOTHING seems normal lately.

Usually, in the beginning of a search, buyer's excitedly look at several homes. Buyers make it a point to see every home in their price range and want to make sure they haven’t missed any. Naturally, they want the best home for their money. After time, the houses may start to blend and the search can get a bit overwhelming.  It begins to become stressful and somewhat of a chore. After looking and looking, they may feel the pressure to finally make a decision and can’t. That’s when they really need a professional REALTOR® to help. A Realtor can focus on homes to show them based on their needs, and look for other listings they haven’t seen yet, or just don’t even know about. That’s where you come in, as the seller...

Your home may be the special new listing they’ve been looking for, after viewing all the others! June is still a great time to list a home for sale! Sure, you have proms, graduations, weddings, Father’s day, but serious buyers are coming out. Many of them may need to get in before the beginning of a new school year, too.

Buyers go through a learning process of searching, looking, and shopping before it sinks in they really have to commit. That’s when they turn into a serious buyer instead of a shopper. At this time, your home could be the one they desire. Remember, it only takes ONE Buyer!

With interest rates so low you have a much better chance of getting some great offers if you list now and perhaps, multiple offers (without the worry of diminishing the price so quickly, as if it had been on since May).

Although interest rates have stabilized recently, the last six months they have climbed over 1/2%. Every time the rates increase 1/4%, there are hundreds of thousands of buyers being eliminated from the pool of qualifying for a mortgage. With rates being unpredictable and volatile, waiting could mean that there will be fewer buyers eligible to purchase your house. It could, also, mean that you will pay a higher % rate on the next home that you want to purchase!

Importantly, people shouldn’t wait for this crazy market to dictate to them what they should or shouldn’t do. One of the most important reason’s for a buyer to buy, and a seller to sell to sell is to go on with their lives. Just don’t allow a less-than-perfect housing market prevent you from reaching your goals as an individual, or as a family. If you decide to place your home on the market for whatever reasons, are they still important to you? If you have to take less than you were originally hoping for, is the dollar difference in sales price worth putting off the family’s future plans? Only you and your family know the answers to that.

Also, be aware that the increasing numbers of homeowners are now paying their mortgages which leads to less distressed properties for sale later. However, there are still EXISTING foreclosures and short sales that will be coming onto the market, and in turn, will affect all the current home sellers with their homes still on the market.

As an example, LPS reported in their latest Mortgage Monitor that:

• There are still twice as many loans going 90+ days delinquent as are starting foreclosure
• There are almost three times the number of foreclosure starts as there are foreclosure sales
• Distressed property inventory levels are almost 45 times the rate of monthly foreclosure sales 

This means that there is such a backlog of properties (‘shadow inventory’) which will start coming to the market more and more as banks clear up their paperwork challenges. These properties will sell at dramatic discounts, and will be, unfortunately, your competition. So, waiting could hurt you more, as these homes begin to trickle into the market. The banks don’t want to flood the market with these distressed properties, but holding on to them for too long would keep us further away from recovery, too. Both Fannie Mae and Freddie Mac are very well aware and have discussed the magnitude of this challenge recently.

An article in Housing Wire, RealtyTrac Senior Vice President Rick Sharga said:

“…major banks currently hold roughly 1 million REO, or homes repossessed through foreclosure, but only 30% have actually made it onto the market.”

 Why are banks holding this inventory?

The article mentioned above answers this question this way:

Coming to a proper balance on how to manage this shadow inventory of foreclosures is vital for the banks. They need to show a healthy balance sheet while not releasing too many distressed properties onto the market, further dragging down home prices and values.

Besides rates increasing and foreclosure issues there are other factors that will play a big part in a buyer’s ability to qualify for a mortgage. Lending standards have been getting so much tighter over the last year. And as the government currently debates the new proposed guidelines (QRM), banks are gearing up for even more stringent standards.

Morgan Stanley recently stated:

“Recent developments in issues such as GSE reform, Dodd-Frank securitization rules, and foreclosure settlement issues suggest a tighter and more expensive environment for mortgage credit.” 

This may impact any potential purchaser for your property and may also impact your next purchase. 

If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Contact your real estate professional in your area today to fully understand your best options.

all the best,
 
Linda