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Selling Your House? 5 Reasons To Do It NOW!

The conventional wisdom when selling a home has always been to wait until the ‘Spring Buying Season’. Over the years, that has seemed to make sense and is now accepted as a good strategy for those who want to sell their house and receive the best possible price. This real estate market has shattered many previously held beliefs. The wisdom of waiting for a spring market is another belief that is about to fall. Here are five reasons why?

1.) Interest Rates Are On the Rise

Interest rates have spiked up rather dramatically over the last ninety days and are now over 5%. Initially, an increase in rates has a positive effect on the market as it forces buyers off the fence. However, it also eats into a buyer’s purchasing power. As rates increase, the mortgage amount a buyer qualifies for decreases. This will eventually have a negative impact on prices.

2.) Your Dream Home Will Never Be Cheaper

If your family goal is to sell your current house and take advantage of the fabulous selection of properties currently available to buy the home of your dreams, DO IT NOW! Prices will continue to soften in most markets. However, if you are buying, COST should be more important than PRICE. Cost can be dramatically impacted by rising mortgage interest rates. Do the math and decide if now is the time.

3.) Buyers Are Out Early

There is mounting evidence that buyers are coming out earlier this year. A belief that now is a good time to buy coupled with the increase in interest rates has started the buying season early.

Pete Flint, CEO of Trulia:

“We’re seeing a national resurgence of buyer and seller activity on Trulia.com. In January alone, we experienced an unprecedented level of site traffic including 11 million unique visitors – which is more than 70 percent year-over-year growth. We’ve are now experiencing 100,000 property views per minute.”

The National Association of Realtors just reported that the number of house  sales increased 12.9% over last month.

4.) Inventory Increases Every Spring

Every year there is an increase of inventory which comes to market as we approach the spring. Here is the number of listings available for sale in 2010.

  • February – 3,531,000
  • March – 3,626,000
  • April – 4,029,000

We believe there will be an increase in these numbers in 2011 as there is a pent-up selling demand created by the weak market of the last few years. You won’t have to worry about this increasing competition if you sell now.

5.) We Are in the Eye of the Foreclosure Storm

While banks are trying to rectify their foreclosure procedures, there is a large supply of discounted properties which has been delayed coming to market. This inventory will be released sometime in the next few months. Foreclosures sell on average at a 41% discount. When released they will be competing with your house for the buyers in the marketplace. If you are looking to sell in 2011, you want to sell before this inventory becomes your competition.

CNN Money quoted the leadership Of RealtyTrac on this issue:

“We’ve now seen three straight months with fewer than 300,000 properties receiving foreclosure filings, following 20 straight months where the total exceeded 300,000,” said James Saccacio, CEO of RealtyTrac.

“Unfortunately,” he added, “This is less a sign of a robust housing recovery and more a sign that lenders have become bogged down in reviewing procedures, resubmitting paperwork and formulating legal arguments related to accusations of improper foreclosure processing.”

“We expect a spike in the first quarter,” said Rick Sharga, a RealtyTrac spokesman.

Bottom Line

These are five strong reasons to sell now instead of waiting until later in the year. Sit down with a local real estate professional today and decide the best options for you and your family.

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30 replies
  1. Ahmed - El -Hage
    Ahmed - El -Hage says:

    Hi! Ahmed;
    I am forwarding some tips about selling your house Now!
    Kindly feel free to call or e-mail me for moro info, or questions?
    Thanks, have a nice day with your family.
    Donacian Kimolo

  2. Lance Brown
    Lance Brown says:

    It seems like it is kinda dangerous to buy now since the prices could drop as the interest rates rise reducing the number of buyers and the huge REO inventory starts to be released.

    The number of buyers seems to just keep shrinking for jumbo and non-FHA loans. It is amazing to see how long the >$500K homes are sitting. It has to be way over 360 days on market for these folks.

  3. Alice Schofield
    Alice Schofield says:

    Steve, During the real estate slump you have provided some of the most current, insightful and appropriate real estate information of any expert I have listened to. It has been very useful in trying to assist my clients, family and friends through the confusion of the last couple of years. Everyone wants to know what to expect. No one knows absolutely however your predictions have come the closest to our reality.
    Alice Schofield, C J Brown/Latter & Blum

  4. steve
    steve says:

    I’m going against the grain here. Everyone should know by know that real estate is local, yet this post paints a picture with an extremely broad brush.

    Yes interest rates are going up and will continue to do so, but prices will have to come down to compensate for that…and that has always been the case. And in #2 you even point out that prices will continue to soften. You can’t sit on both sides of the fence.

    With the drastic change in consumer buying habits, the old view of “seasonal” buying is outdated.Sure more homes may “sell” during a particular time of year, but the actual search and research leading up to the purchase is started by consumers, 6-12 months in advanced. The web never sleeps, only Realtor’s do. Since a vast majority of buyers do their own research, agents see buyers after they’re well into the search process.

    Sorry, but using broad antiquated views and outdated metrics for a new problem that we have never before had to deal with, and is extremely local in nature, is worthless. Keeping current matters, buy only within your specific area…not everywhere.

  5. michael
    michael says:

    I think with companies like Redfin coming on-line to help buyers and sellers discover the equilibrium price points with less friction there is hope for the do it your self sellers. As prices drop sellers are going to turn to these sites more and more to reduce their losses. This might mitigate the further price collapses that this posting implies are on the horizon.

  6. Jack Oudin
    Jack Oudin says:

    To the KCM Crew:
    Whether you live in NJ or Charlotte, NC… I agree with your recommendations to Sellers to list their homes now…because we’ve noticed here that Buyers are now coming out of hibernation! Today it was in the high 70’s and the Seller/Buyer activity is heating up too!

    But here’s something to think about…last night while shopping at STAPLES, I struck up a conversation with a gentleman who, like me, was trying to find the right planner (yes a Franklin Covey paper version… this supplements my voracious Blackberry use)… anyway, I recognized his accent from NY/NJ area and sure enough, he was born in PA but grew up in NJ. In 2007, he took early retirement from his school principal position, to follow his wife to Charlotte.

    First, he put his NJ home 4 Sale (FSBO) and was fortunate to sell his home in 30-days. I suspect that by not using a trusted Broker/Realtor, he may have left some money on the table. Then, they purchased a new construction inventory home directly from the builder/developer in the Indian Land, SC area, without using a local Broker/Realtor.

    Guess what happened next… you guessed it… the two main builders have since gone bankrupt, the developer is underwater, only 60 of the 120 planned homes have been built, some spec homes are still vacant (foreclosure process), the HOA dues which originally paid to maintain the community is short money and the developer refuses to pay additional for community maintenance services. The weeds are now overwhelming the landscape, and the community pool was shut down. This is not a pretty picture, but uninformed buyers run the risk of making a big financial mistake (in any market condition) when they make a purchase without the professional advice of a local area Broker/Realtor expert!
    Please share this with your clients, and I welcome your referrals.

  7. Steve
    Steve says:

    Jack, it’s amazing that you believe that realtors can solve all the problems in with the housing market. Like you ornanyone elsebwould have saved the day for the people who bought from that builder. Be serious!

    And I love the constant talk that realtors feel the need to keep telling everyone that they’re “local area broker/realtor experts. The term expert connotates something incredibly amazing in a person, but you bring it to the level where it means that you can’t possible screw up big time, because you/we are realtors.

    Look at the guys on Wall Street, where most have real degrees, Inc master degrees from some of the finest institutions in the world, and look how they screwed up the economy. And we realtors had a hand in it, because we all sold home to some that couldn’t afford it, and we really didn’t care.

    All this we’rebso great attitude is nothing more than the, if you say it enough everyone will start to believe it, stuff. I know thatnyou would have gotten the guy more money, and younwould have saved him from making the wrong move…yea right! No one, other than a alt or is buying this anymore. Heck mostnof us realtors don’t even buy it.

    Were you selling homes to people when the market was tanking, because if so why didn’t you tell them it wasn’t a good idea at that time?

    Sorry Steve. But why is is it that realtors are the only group thatbfeels the need to always say how expert they are, when no one else in corporate America does this. Why all the insecurity? It makes us all a laughing stock. Let our work speak for itself,and if you can’t, then I guess you not an expert. Sorry for venting

    • Steve Harney
      Steve Harney says:

      @ Steve

      Definition of expert: a person who has extensive skill or knowledge in a particular field.

      I hope and pray that EVERY real estate professional aspires to be an expert. And, if they acquire extensive skill and/or knowledge, I have no problem with them using the term as professionals in every other field do.

  8. John
    John says:

    I recommend that if you are selling your house that you don’t rush into it. Be sure to take your time and get everything right and do not overlook the little things like the condition of your roof. Before I sold my house, I went to a roofing repair charlotte nc company that made my roof look good as new and my house sold with no problem.

  9. sell house online
    sell house online says:

    Great info! Truly appreciate the research in simple terms. As prices drop sellers are going to turn to these sites more and more to reduce their losses. This might mitigate the further price collapses that this posting implies are on the horizon. Really great information and it is very useful information for me. Thanks for sharing…

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