If
you plan on moving anytime in 2011, you should strongly consider selling
your house now rather than waiting. Here are five reasons
why:
1.) This is when your
house will get the most exposure
The
spring, and particularly the month of May, is when most buyers enter the
real estate market. This surge of buyers dramatically increases the
exposure for your house . The best chance of getting quality offers
(perhaps even multiple offers) is RIGHT NOW!
2.) Foreclosures and
short sales will increase in about 90 days
The
good news is that the number of people paying their mortgage on time is
increasing. This will lead to less distressed property sales later this
year and throughout 2012. The not-so-good news is that there is still a
large inventory of existing foreclosures and short sales that will still
be coming to market.
As
an example, LPS reported in
their latest Mortgage
Monitor that:
§
There
are still twice as many loans going 90+ days delinquent as are starting
foreclosure
§
There
are almost three times the number of foreclosure starts as there are
foreclosure sales
§
Distressed
property inventory levels are almost 45 times the rate of monthly
foreclosure sales
This
means that there is a backlog of properties which will start coming to the
market in about 90 days as banks clear up their paperwork challenges.
These properties sell at dramatic discounts. They will be your
competition. Both Fannie Mae and Freddie Mac have recently discussed
the magnitude of this challenge.
3.) Interest rates
have risen over the last six months
Interest
rates have stabilized recently. However, in the last six months, interest
rates have climbed over 1/2%. Every time the rates increase 1/4%,
approximately 250,000 buyers are eliminated from qualifying for a
mortgage. In an environment of volatile rates, waiting could mean that
there will be fewer buyers eligible to purchase your house. It also could
mean that you will pay a higher rate on the next home you
buy.
4.) Qualifying for a
mortgage is about to get even more difficult
Besides
increasing rates, there are other factors that will hinder a buyer’s
ability to qualify for a mortgage as we move forward. Lending standards
have been getting tighter over the last year. And as the government
debates the new proposed guidelines (QRM), banks
are gearing up for even more stringent standards.
Morgan
Stanley
recently stated:
“Recent
developments in issues such as GSE reform, Dodd-Frank securitization
rules, and foreclosure settlement issues suggest a tighter and more
expensive environment for mortgage credit.”
This
may impact any potential purchaser for your property and may also impact
your next purchase.
5.) It’s time to get
on with your life
Probably
the most important reason to sell is so you can get on with your life. You
placed your home on the market for a reason. Do not allow a
less-than-stellar housing market prevent you from reaching your goals as
an individual or as a family. Think about the reasons you decided to move
in the first place. Are these reasons still important to you? If you have
to take less than you were originally hoping to get for your house, your
family has a question to ask each other: Is the dollar difference in sales
price worth putting off our plans? Only you and your family know the
answer to that question.
Bottom
Line
If
you plan to sell this year, the reasons above prove that selling now makes
more sense than waiting to later in the year. Sit with a real estate
professional in your area today to fully understand your best
option.
Debb Carl and Airen Sapp, AKA DEBnAIR have worked together as a team for
20 years and are among the leading Sedona Realtors providing
excellent service in Sedona Real Estate sales in Sedona and throughout the Verde Valley. You can contact Debb and Airen at http://www.debnairrealestate.com.
