For some, the decision to sell a home is 100% necessary: job change, seller’s market, need more room or need to downsize, etc. For others, there could be a number of reasons why a property owner might hesitate, or procrastinate, to sell. If you’ve thought about selling, but haven't taken the first step, you could have fallen victim to some of these common seller procrastinations below:
1) "I'm waiting for the value of my property to increase"
Waiting to sell a property might seem like a good idea, especially in real estate markets that are still growing. But in cities where real estate markets have seen lots of competition (like the Portland metro area), waiting to sell a property in order to see a larger return may backfire if other nearby areas also see a rise in property values. If you’re procrastinating selling a property because of a hope that the property’s value will increase, it’s best to talk to a real estate agent about the local market to see if now is the time to sell or not.
2) "I'm waiting for my last child to leave for college"
While it may seem like a great idea to stay in one home while your children grow, the reality is real estate markets all over the country go up and down year to year, and if you’re hoping to make a large return on your home once your kids have left the nest, you might be out of luck. Markets that are popular now might not be in 7 to 17 years. When it comes to real estate, nothing is guaranteed, especially in the not so foreseeable future. By waiting, you’re betting on an increase for real estate in your area, and while that bet might seem like a sure thing right now, the future is unknown.
3) "I'm waiting until I retire"
For many Americans who have recently retired, the homes they bought 30 to 40 years ago have seen a very large return on investment. The median home value in the U.S. in 1980 was $47,200. As of 2014 numbers, that value rose to $188,900 (and for those markets that have seen large gains, the median value may be hundreds of thousands greater). For those just entering the real estate market, buying a home is incredibly expensive and requires a lot more money than it did when our parents bought their first home. Real estate, especially for younger people, should almost act as a financial strategy, where one plays the local real estate market by buying low and selling high in a relatively short amount of time to fully maximize an investment. Staying in a home for only three to five years could be a much more financially sound strategy than hoping a single home’s value increases x amount over the next 40 years. The economy is completely different than it was when Baby Boomers first entered the job market. Don’t procrastinate on selling with the hope that you’ll see a greater return on your property when you retire like many of our parents are seeing.
Selling a home is a big decision. For some the decision is easy, for others it can mean years and years of delay. Don’t fall prey to seller procrastination - contact me today to discuss your selling options.