Coming to the decision to sell your house is not a light matter. There are a lot of decisions to be made, like whether to use a licensed real estate agent or sell directly to a home buyer; where should you move next? Have you considered or know how the coronavirus has effected our real estate market in Middle Tennesse? Take a look at our article on selling a house during the pandemic. Don’t let these questions delay your decision to sell your house. Here are five ways waiting to sell your house in Nashville will cost you.
Houses are in Demand
Waiting to sell your house in Nashville will cost you because there are still buyers for houses. Mortgage rates are at an all-time low so now is a great time to put your house up for sale. With the impending market dip due to the coronavirus economic shutdown, houses will soon be flooding the market, and demand may start to wane.
But for right now, there are still enough buyers in the market to buy all of the houses for sale. There are also buyers that have taken a large portion of their money out of the rapidly fluctuating stock market and need to invest it in real estate. Once these funds are used, they will stop purchasing real estate.
Do you know why many people hold onto their houses too long? We have written an article we feel might help you understand the problems of holding a house too long, “Top 7 Reasons Why People Hold onto a Property Too Long in Nashville.”
If you put your house for sale right now, you will have less competition than if you wait until the market really starts to dip. Buyers will easily find your house in Smyrna, Murfreesboro, or Nashville. Once the downward trend is realized, many sellers will panic and put their houses on the market for fear of a crash and house prices start declining.
This is not good for you because the market will soon become flooded and you will have lots of other competition for buyers in Nashville to review. In order to catch the buyer’s attention when the market is flooded, you will have to make sure your curb appeal and all necessary upgrades have been done. You may even have to accept a lower offer than you plan ned on, just to entice a buyer.
If you wait to sell your house in Smyrna, Columbia, Franklin, or Springfield and you start to realize that downward trend, that means the average sales price for your comparable properties will also be less than you were expecting, and you may even have to accept a lower than market price offer to sell your house. This costs you the extra capital gain you could have had if you did not wait.
When the market is flooded with houses for sale, the buyers have more power in selecting the house they want and are able to make lower offers because they have so many other options. Desperate sellers in markets like these will start accepting the lower offers, which compounds the dip in the housing market. It becomes a buyer’s market.
The Cost of Waiting
As we move forward with COVID-19, more people are losing their jobs. Many of these are potential buyers. We do not know when most of the furlough employees will return to work. Unfortunately, thousands of employees have been permanently released because their companies and businesses failed. You know there are other issues involved when hesitating in selling a house. You may want to read our article “How Much is Waiting to Sell Your House Nashville House Really Costing You?“.
The longer you own the property for the year, the higher the amount of taxes and dues you will owe. The annual taxes on the property are prorated based on how many days out of the year you own it, you will only receive credit for the part of the year you will not own the property.
The same goes for homeowners association fees, only the part of the year you do not own the property will get refunded. These prorations are subject to the payment due dates. Most taxes are due at the end of the year, but some homeowners association fees are assessed at a different point in the year.
Downsizing a home has other prolonged costs including mortgages, insurance, and utilities. A smaller home will have fewer expenses due to size.