If This is a Good Time to Sell Your House
Last year, buyer demand increased due to record low mortgage rates. That said, because of those low mortgage rates and fewer houses on the market, home prices went up. To put it simply, the last half of 2020 was a seller’s market. But will 2021 be the same? If you’re wondering if this is a good time to sell your house, let’s look at the shoulds and shouldn’ts.
If This Is a Good Time to Sell Your House
Should sell your house: Interest rates are low
Low-interest rates are great for potential buyers. They make monthly mortgages more affordable! Why is this a good thing for sellers, you ask? While experts expect interest rates to remain steady in 2021, there will still be a low supply of houses on the market, meaning that home prices will rise and sellers will walk away with a good chunk of change.
Shouldn’t sell your house: You refinanced, or you’re in forbearance
Last year featured a huge refinance boom. As interest rates dropped, homeowners took advantage and refinanced their mortgages at lower rates. If you recently refinanced your house, you’re probably in a better place to afford your current mortgage than if you were to buy something new.
According to the Mortgage Bankers Association, approximately 2.8 million homeowners are in forbearance plans. If you are in forbearance, you can still sell your house, but the money you haven’t paid will increase your total payoff (which includes any interest you owe). If your forbearance plan due to end and you’re still struggling, talk to your lender about an extension.
Should sell: You live in a hot area
If you live in an area where home prices are skyrocketing, it might be a good time to sell your home. U.S. home prices have doubled in the last decade, according to Zillow. In recent months, some cities, in particular, have experienced many booms in home prices. For example, in 2010, the average home price in Denver, Colorado, was $246,680. The average home price in 2020 was $464,068,
Shouldn’t sell: Your income isn’t stable
The economy is starting to recover, but that doesn’t mean everyone’s back on track. If you’re waiting to go back to work after being furloughed, or you’re worried your employer will be making layoffs, you might be thinking it’s an excellent time to sell your house and purchase something cheaper.
Keep in mind, though, a great deal of money goes into buying a new house (regardless of the property type). Besides a down payment, you’ll have to pay closing costs, property taxes, insurance, etc. The costs add up quickly. And if your income isn’t stable, you might struggle to make ends meet.
Instead of selling your house, talk to your lender about refinancing or entering a forbearance plan to alleviate financial stress.
If you decide this is the time to sell, ask yourself, do I want a fast sale? Do I want to avoid the open houses, people walking through my house, and the negotiations over price. If what you want is a cash sale, fast closing, and no worries about fixing any problems with your home, then you need to call Terra Firma Property Solutions, LLC.
Ask for FREE information about How to Sell Your House Fast.
Terra Firma Property Solutions, LLC, is a professional, full-service real estate solutions firm.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. At Terra Firma Property Solutions, we are excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566
