Your friends just sold their home for an amazing profit. You are considering putting your home on the market, but how do you know if the time is right.
Whether you are simply a homeowner or a real estate investor, you may have been paying attention to the market. It has been exceptionally hot for the past few years. In many areas, price appreciation has been through the roof. And though there is a slowdown happening in the market, there are still plenty of properties that are selling quite well.
One thing that is working in many sellers' favor right now is a fear of where the market is going. In areas where appreciation has been modest, rising interest rates are causing a few homebuyers to jump on properties before they can no longer afford them. Many consumers are afraid that they will pay to much if they wait much longer.
While interest rates are on the rise, they are still at a very low point. They haven't risen enough to knock the majority of potential buyers out of the market. Add in new loan programs designed to lower the monthly payments, and you will find that there aren't a lot of people shying away from buying.
In fact, most buyers buy because they are ready, not when the market is ready.
And perhaps that is the way to sell a home. Are you ready to move on? Do you have substantial equity in your home? Is your home in good shape?
If you answered yes to all three questions, then you are probably ready to sell your home. You can get an idea of what your neighborhood market is like by watching it yourself. Look at home that are similar to yours in style, size, age and location. See how long they remain on the market.
You can also talk with a Realtor about your decision to sell. Ask how long their listed properties are staying on the market. Is this up or down from last year? Where do they see the market heading?
The market is an interesting force. The thing is that we tend to focus on what it is doing right now, instead of looking at overall trends. Is the rise in interest rates really hurting the consumer when it comes to a potential for foreclosure? Even when interest rates were declining, foreclosure rates were increasing. Maybe they aren't as tied as we think.
What should determine whether you should sell your home or not? Consider your job status, your income level, your age, your family and all the other factors that are important to your everyday life. Yes, we would all like to make a huge profit on our homes, but no matter what the market is like, chances are you will not get any more than your home is worth.
So are you ready to sell your home? Are you ready to buy a new one?
Look to yourself and your finances and not the market. The market isn't always easy to pin down. Let your timing be right, not the market's. When your focus is on your own finances, you are able to make better decisions. Good luck.
Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today
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