Blog
This blog is available in English or Spanish:

5 Reasons You Should Consider Selling Now

Agents, did you know you can share a personalized version of this post? Learn more!

If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:

1.) This is when your house will get the most exposure

The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!

2.) Foreclosures and short sales will increase in about 90 days

The good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to 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 a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.

3.) Interest rates have risen over the last six months

Interest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.

4.) Qualifying for a mortgage is about to get even more difficult

Besides increasing rates, there are other factors that will hinder a buyer's ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government 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.

5.) It's time to get on with your life

Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.

Bottom Line

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

Share

About The KCM Crew

We at The KCM Crew believe every family should feel confident when buying & selling a home. KCM helps real estate professionals reach these families & enables the agent to simply & effectively explain a complex housing market. Take a 14-Day Free Trial of our monthly membership to see how we can help you!

23 Responses to “5 Reasons You Should Consider Selling Now”

  1. Mark Edwards May 10, 2011 at 8:26 pm # Reply

    If you don’t HAVE to move now, then my advice is to wait another year. Many are suggesting that there’s going to be a housing shortage in another year, and there is already a high supply of homes for this spring. If you don’t have to move, you’ll probably be better off waiting a little while longer…the market will eventually return. To strongly urge people to list now will compound the problem and make the situation worse.

  2. Peter Benario May 10, 2011 at 10:13 pm # Reply

    I don’t agree that you should wait. Real estate
    Historically goes in eight year cycles and since the crash was in 2008 we have at
    Least four more years of problems. Things
    May be worse not better next Spring.

  3. cathy baumbusch May 10, 2011 at 10:32 pm # Reply

    I think this article is aimed at those who want to move and buy again but are on the fence because they want to time the market. There is a vast shortage of listings in the DC metro area. We are seeing multiple offers and price increases of 5-9% month to month here. Another reason not to wait: There is a proposal to require 20% downpayment on mortgages, which will price most out of the market if it is passed. Also, PMI on FHA loans is already higher. Qualifying for a mortgage is already more difficult as underwriters pour through files with a fine toothed comb. And it will just get harder. So waiting might result in a reduction of the number of qualified buyers able to purchase your home. The market of old is not returning. The whole game is changing.

  4. Bruce Smith May 14, 2011 at 6:41 pm # Reply

    cathy baumbusch comment is interesting: DC Metro going up 5 to 9% a month and shortage of listings?
    Must be that the growth industry in America is government!

  5. Debbie Hensley May 15, 2011 at 1:45 pm # Reply

    For the simple reason alone, Intetest rates are at a all time historical low, it makes sense to sell now while the buyers have this low interest rate. They are more likely to buy now than ever!! There ia talk about government doing away with mortgage interest deduction on taxes. What do you think.will happen if this passes?? Now is a good time to sell!

  6. Bill June 1, 2011 at 2:10 pm # Reply

    Do a google search for the price of gold versus the cost of an average home in the U.S. It’s never a good idea to sell low. Home values have only been this poor one other time in the past 50 years – Dec 1979 – Feb 1981. If you own – hang on. If you don’t, BUY NOW. Don’t base anything on the Dollar, base it on gold.

Trackbacks/Pingbacks

  1. 5 Reasons You Should Consider Selling Now | Lake Country Real Estate in Wisconsin Waukesha County – Lisa Bear - May 10, 2011

    […] 5 Reasons You Should Consider Selling Now. […]

  2. 5 Reasons You Should Consider Selling Now « DavidREveals - May 10, 2011

    […] by The KCM Crew on May 10, 2011 · 0 comments […]

  3. 5 Reasons to Sell Your House, Now - Cathy Glass, Realtor® » Cathy Glass, Realtor® - May 10, 2011

    […] http://kcmblog.com/2011/05/10/5-reasons-you-should-consider-selling-now/ […]

  4. 5 Reasons You Should Consider Selling Now « AndreaSaunders - May 10, 2011

    […] 5 Reasons You Should Consider Selling Now […]

  5. Untitled | Rhonda Aflakian - May 10, 2011

    […] by The KCM Crew on May 10, 2011 · 0 comments […]

  6. 5 Reasons You Should Consider Selling Now | The Pete Peters Team - May 10, 2011

    […] via 5 Reasons You Should Consider Selling Now. […]

  7. 5 Reasons You Should Consider Selling Now | - May 10, 2011

    […] by The KCM Crew on May 10, 2011 · […]

  8. If you are on the fence about whether to sell now…or wait until later, this article provides some good information to think about. If you would like more information about what your home is worth in today’s market, just let me know and I am ha - May 10, 2011

    […] 5 Reasons You Should Consider Selling Now. […]

  9. 5 Reasons You Should Consider Selling Now « Michaelwolffrealtor's Blog - May 11, 2011

    […] 5 Reasons You Should Consider Selling Now. Explore posts in the same categories: […]

  10. 5 Reasons to SELL SELL SELL! « Blog the Attleboros - May 12, 2011

    […] a comment The KCM Group posted a great blog giving 5 reasons you should sell […]

  11. my blog : 5 Reasons You Should Consider Selling Now - May 13, 2011

    […] by The KCM Crew on May 10, 2011If you plan on moving anytime in 2011, you should strongly consider selling your house now rather than waiting. Here are five reasons why:1.) This is when your house will get the most exposure The spring, and particularly the month of May, is when most buyers enter the real estate market. This surge of buyers dramatically increases the exposure for your house . The best chance of getting quality offers (perhaps even multiple offers) is RIGHT NOW!2.) Foreclosures and short sales will increase in about 90 daysThe good news is that the number of people paying their mortgage on time is increasing. This will lead to less distressed property sales later this year and throughout 2012. The not-so-good news is that there is still a large inventory of existing foreclosures and short sales that will still be coming to 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 foreclosureThere are almost three times the number of foreclosure starts as there are foreclosure salesDistressed property inventory levels are almost 45 times the rate of monthly foreclosure sales This means that there is a backlog of properties which will start coming to the market in about 90 days as banks clear up their paperwork challenges. These properties sell at dramatic discounts. They will be your competition. Both Fannie Mae and Freddie Mac have recently discussed the magnitude of this challenge.3.) Interest rates have risen over the last six monthsInterest rates have stabilized recently. However, in the last six months, interest rates have climbed over 1/2%. Every time the rates increase 1/4%, approximately 250,000 buyers are eliminated from qualifying for a mortgage. In an environment of volatile rates, waiting could mean that there will be fewer buyers eligible to purchase your house. It also could mean that you will pay a higher rate on the next home you buy.4.) Qualifying for a mortgage is about to get even more difficultBesides increasing rates, there are other factors that will hinder a buyer’s ability to qualify for a mortgage as we move forward. Lending standards have been getting tighter over the last year. And as the government 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.5.) It’s time to get on with your life Probably the most important reason to sell is so you can get on with your life. You placed your home on the market for a reason. Do not allow a less-than-stellar housing market prevent you from reaching your goals as an individual or as a family. Think about the reasons you decided to move in the first place. Are these reasons still important to you? If you have to take less than you were originally hoping to get for your house, your family has a question to ask each other: Is the dollar difference in sales price worth putting off our plans? Only you and your family know the answer to that question.Bottom Line If you plan to sell this year, the reasons above prove that selling now makes more sense than waiting to later in the year. Sit with a real estate professional in your area today to fully understand your best option.http://kcmblog.com/2011/05/10/5-reasons-you-should-consider-selling-now/ […]

  12. 5 Reasons You Should Consider Selling Now | topagentsmarketing - May 13, 2011

    […] 5 Reasons You Should Consider Selling Now […]

  13. Pinkham Real Estate » Blog Archive » Sell your North Conway home now: here’s why - May 18, 2011

    […] http://kcmblog.com/2011/05/10/5-reasons-you-should-consider-selling-now/ […]

  14. Blaming Home Owners for Today’s Housing Crisis Is Not Fair | Focus On Crofton - June 10, 2011

    […] 5 Reasons You Should Consider Selling Now (KCM Blog –  5/11) […]

  15. 5 Reasons You Should Consider Selling Now | Vickie McDermott - March 21, 2012

    […] by THE KCM CREW on MAY 10, 2011 · 19 COMMENTS […]

  16. 5 Reasons You Should Consider Selling Now | Vickie McDermott - March 21, 2012

    […] by THE KCM CREW on MAY 10, 2011 · 19 COMMENTS […]

  17. Good Time to Buy? - Phoenix Real Estate and More - April 9, 2012

    […] 5 Reasons You Should Consider Selling Now (KCM Blog – 5/11) […]

Leave a Reply