Why do people hold onto a property too long in Nashville and surrounding areas? There’s no doubt about it – real estate is a great investment. There is huge money-making potential when you own real estate. But how do you know if you’ve held a property too long?
Reason 1. They are waiting for the peak market to come back.
One of the reasons why people hold onto a property too long in Nashville, Tennessee is that they are waiting for the prices of the real estate market to double, or triple! The homeowners are expecting the huge growth we saw in the last 3 years to continue at the same pace. Some real estate owners are watching the market regularly and aren’t seeing the huge price increase they were hoping for. Waiting for another 20% to 50% growth will take longer than they realize.
They watch it increase for a few years, then it corrects itself and goes back to where they bought it. They have a plan to make a certain percentage on their investment, but taking into account the annual taxes, holding costs, and the original investment, it is starting to become more money invested than they will ever see come back through a sale without the real estate peak market. Do you want to know just how much it costs to keep your home while waiting for the perfect housing market? Do check out our article “How Much is Hesitating To Sell Your Nashville House Really Costing You?“
Reason 2. They inherited it from family
Another reason why people hold onto a property too long is that they inherited it from a really close family member, possibly their parents or grandparents. They want to hold onto that property forever to keep a piece of them in their lives, even though they never plan to live in it, rent it out, or build on a piece of vacant land. It might not even be in the same state! The annual taxes or homeowner’s association fees might even be a little too much for their budget, but they don’t care. They want to hold onto the property as long as possible because it was the old family place.
Reason 3. They plan to build
A more practical reason why people hold onto a property too long is that they plan to build on it. Maybe they’ve done a ton of research on the neighborhood and it’s a perfect fit for them and their family, but they can’t afford to build. Or maybe they can’t settle on the perfect floorplan for their dream home. They hang on to the dream of building, but never actually build. They do, however, pay taxes and maybe even homeowner’s association fees, but they hold on to the property with hopes that one day they will actually build their house.
Reason 4. They want too much money
A very common reason why people hold onto a property too long in Murfreesboro or Columbia, Tennessee is very simple: they want too much money. They have an unrealistic idea of what they’re property is worth, and are not interested in selling for less than their ideal number.
Most home sellers do overestimate the value of their homes until a local real estate professional can show them on paper the real worth of the home. The sellers that have their house listed way over market value probably really don’t want to sell and will be insulted at anything less than their unrealistic price tag. It’s sad but true.
Reason 5. They keep putting off repairs and updates
Many homeowners want to make their home grand and have plans to create a masterpiece of a home. Their problem is they don’t have the money or time to see the project through. If they wait too long, the styles change and the upgrades will cost more because of the labor and materials inflation.
Other owners begin putting off repairs due to procrastination or the lack of funds to properly maintain the home. I visited a house last week and the owners wanted to sell my house fast Columbia but had not made any repairs in years. The roof was in really bad shape, the floors were worn to the subfloor, bathroom tiles were cracked, the walls badly needed painting, windows were broken, and the HVAC was almost shot.
Reason 6. They are waiting for the perfect home
I have met many homeowners who are waiting for the perfect house. I am here to tell you as a Realtor and an investor, the perfect house does not exist even if they design it themselves. They cannot agree on the home style or layout or even the color of the stone countertops in the kitchen and bathrooms.
They may visit a lot of open houses but none seem to please them except for those that are hundreds of thousands above their budgets. The solution for these house buyers is to come to terms with themselves and make the necessary compromises to please their vision of a nice house.
Reason 7. They have fond memories and want to hold onto a property
Another reason why people hold onto a property too long is that they might have really fond memories. Emotions are hard to deny. Maybe their grandmother lived there and they grew up in the kitchen making pumpkin pies for Thanksgiving with her, or learning how to make pistachio thumbprint cookies in the dining nook.
Perhaps this was their first house as a married couple and have lots of happy memories cuddling in the den watching movies. Maybe it’s the house their children grew up in and they marked the door frame of their kids’ growth. These are all extremely strong emotions to override and they are understandable reasons why people hold onto a property too long in Nashville.
If you think you might be holding onto a property too long, send us a message or give Southern Homes Investments Nashville TN a call at 615-500-4466 to discuss your options in Middle Tennessee. We help homeowners with unneeded inherited property, homes needing repairs and updates, and many other reasons why people should sell their houses sooner rather than later. We at Southern Homes Investments can close quickly, and we buy houses Nashville and surrounding areas, just give us a call.
Disclaimer: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your home.