Deciding to sell your house is not an easy thing. There are many decisions to be made, like whether to use a licensed real estate agent or sell directly to a Minnesota home buyer; where are you going to move next? Don’t let these questions stop you from deciding to sell your house. Here are four ways waiting to sell your home in Minneapolis St Paul will cost you.
Houses are in Demand
There are things you should know about the current real estate market in Minneapolis St Paul that could make or break your bank account depending on what you do. Waiting to sell your house in Minneapolis St Paul will cost you because there are still buyers for houses. Even today, with the unrest happening in Minneapolis St Paul and the Coronavirus taking its toll. Be prepared and knowledgeable on ways to sell you home no matter whats going on in the world. This spring, we have seen the number of houses up for sale and dropped be up to 50%, and some of the buyers are not buying that would have. But, the buyers are out there are making decisions fast and know what they want. People are getting more active, and Mortgage rates are at an all-time low, so now is a great time to put your house up for sale. With the impending market dip due to the economic shutdown, we could see houses soon flooding the market, and the buyers that are out there will have many more options to go after. The higher demand that we have seen in the last couple of years may start to wane, becoming a buyers market. For now, there are still enough buyers in Minnesota to buy all of the houses for sale. Some buyers have taken a large portion of their money out of the rapidly fluctuating stock market and plan on investing it in the local real estate market. Once these individuals make their purchases, the real estate left may be harder to sell.
If you put your house for sale right now, you will have less competition because most people have not flooded the market with the houses that were taken off earlier this year. With your house being sold and the smaller group that is being marketed today, buyers will easily find your home in Minneapolis St Paul. Once the downward trend that experts talk about starts, many sellers will realize that they need to get going and list their house for sale. That means the local twin cities market will soon become flooded with real estate, and you could have lots of other competition. To catch a buyer’s attention when the market is flooded, you will have to make sure your curb appeal and all necessary upgrades have been done to their liking, and you may have to accept a lower-priced offer than you plan on, to solidify a buyer.
Missed Opportunity To Sell, Competition
- More competition from other properties in the area that need to be sold will make it harder to sell yours.
- Property prices will drop over all over Minneapolis St Paul.
- To be competitive, houses will need to have delayed maintenance done, upgrades completed, and curb appeal that draws people in.
If you wait to sell your house in Minneapolis St Paul and you start to realize that a downward trend, that means the average sales price for your comparable properties will also be less than you were expecting. Many people who are homeowners remember the great recession of 2008 and 2009. Prices plumbed all over the metro area of Minnesota , with regions in Minneapolis St Paul hitting a 35% to 40% decline in values. Most areas of North Minneapolis and frog town in Saint Paul were areas most hit. Since then, those areas have sprung back the fastest, increasing over 100% in many cases. Now that we can look to the past, we should be aware of the future and what we should be doing to be smart if a downturn does happen again.
If the downturn happens, you may even have to accept a lower than market price offer to sell your house. If you sell now compared to then, it is like putting thousands of dollars in your pocket compared to having to settle for a lower price. When the Buyers market, the Minneapolis St Paul is flooded with houses for sale, the buyers have more power in selecting the house they want to own. Because of that, they can make lower offers on your home because they have so many other options. Desperate sellers in the twin cities markets like these will start accepting the lower offers, which compounds the dip in the housing market. No one expects the downturn to be anything like that of the great recession, but we never can predict the future. So, to be safe, it’s better to sell now.
The longer you own the property for the year, the higher the percentage of property taxes and dues if you own a townhouse or condo you will owe. The annual property taxes are prorated based on how many days out of the year you own the house, and you will only receive credit for the part of the year. The same goes for homeowners association fees; only the part of the year you do not own the property will get refunded. These perorations are subject to the payment due dates. Most taxes are due in Minnesota twice a year starting in May and again in October. Some homeowner association fees are assessed at a different point in the year, so check with your association to see when you are due. Then you have other holding costs like utilities, insurance, and taking care of the property. Then as you know, every house has things to fix, the longer you hold on to the house, the better chance of one of the more expensive things will go out. Replacing a furnace in Minnesota cost on average over $5000, water heaters up to $1000, and replacing old galvanized water lines are thousands.
To conclude, waiting to sell your Minneapolis St Paul, Minnesota house can cost you a bunch if you are considering selling, but decide to wait.