The appreciation of the real estate market during the past couple of years has increased the value of homes. If you rented or leased your property and your lease is expiring, you may be undecided as to whether you should rent again or cash out. While several factors may exists, it is necessary that you explore all your options before making a decision you may regret later on.
The first factor is that you must have an idea of the price for the house. Even though investors are aware of what is happening in the market, they usually believe that their property values much more than it is worth. While you may have completed a few upgrades, these may not necessarily make you get the price you are asking price for your home. Price depends heavily on location. Look at the prices for similar homes sold within your location over previous months. This will give you a good idea of the value of your property. If you are happy with the amount, you can go ahead. Bear in mind however, that real estate commissions and similar closing costs will affect your bottom line.
The second factor is to find out the reason you are selling. Are you selling because you have no other option, or do you need the capitol for other projects? Will you get a better price next year or in the next five years? If the property has become problematic, you could hire a property manager or find other workable solutions. Write down the reasons you have for wanting to sell. Think through these reasons and then ask yourself these questions. What if the market improves or there are changes in your life later on? Would you would regret later the decision to sell?
Timing the market and trying to beat interest rates may be your reason for wanting to sell. However, you must understand that these can change without notice. While interest rates have stayed within the 4% bracket since the last few years, the expectation is that they will increase before the year ends. This could mean fewer buyers being approved resulting in a decrease in demand. Although this could be a reality, lenders may decide to offer new programs with less strict guidelines to entice buyers to return. Policy changes and interest rates are essential, but they should not be the primary reason for considering selling. Things can change considerably from the initial listing of your home to the final sale. Sell your home because it is the right thing to do and you are certain that the attractiveness of your home will remain regardless of these changes. Consider waiting if you want rates to remain low and if you want an offer from the first interested buyer.
It is difficult to maximize on your selling price when you are trying to time the market. It is very important when you are dealing with real estate that you carefully consider your reasons for wanting to sell and what you will eventually do with the profits. You may be able to sell at a profit this year, but it is best not to sell too early and regret it later on.