When is the right time? Now very may well be. The real estate market and broader economy are dynamic, and it takes a keen intuition to time your sale right.
Demand is high, prices are high, and interest rates are rising. Freddie Mac forecasts that rates will increase to over 5% in the next months. This is going to mean rising homeownership costs and reduced demand. What’s the best way to proceed?
If selling makes sense to you personally, then selling may also be a good decision from an economic standpoint. Read on to learn more about some considerations in selling your house fast in Massachusetts during this volatile market period.
How fast do you need to move?
If you need to sell quickly, now is a good time to consider selling. As we approach the top of the market, appreciation will slow, and interest rates will rise. Both of these situations are occurring now. With market values edging higher and interest rates approaching 5%, affordability is gradually declining. Fortunately, there’s still a lot of demand for housing and marketing times are relatively low, but this won’t be the case as we go into the next year and beyond.
If your move isn’t urgent or you’re not certain about moving, it may be still be a good time to sell as prices won’t be this high again for many years until after the next recession.
How recently did you buy the property? If it’s been more than two years and you’ve living in it full time, you’ll likely be exempt from capital gains tax on the sale of the property. The IRS provides an exemption on the first $250K for individuals and $500k for couples from the gain on the sale of a principal residence.
When the tax situation is not ideal for other income, liability, and asset-based reasons, some homeowners choose to rent the property, offer a lease option, or extend seller financing. This helps defer tax liability for gains until the year earned. This strategy can also help provide an interim cash flow to offset ownership and operational expenses. Please request an offer here and we’ll explain the choices you have in selling and structuring your profit from the sale.
Employment & School
How would a move line up with school schedules for student of levels in the household? For elementary, high school, and college students alike, making a big move can cause a lot of stress and interfere with study and course schedules. It’s not just students, everyone who works has a lot on their plate. In planning your move, consider everyone’s schedule and work it out ahead of time. With a little planning, coordination, and compromise, a successful move can be pulled off during the work and school season.
Work with a skilled investor, agent, loan officer, appraiser, and other quality real estate pros to guide you in selling your property and understanding how the market will influence the outcome of the transaction.
If you move now, will there be a home for you to buy? There’s another good point here about possibly looking for an offer. Right now, inventory is low, but it’s still possible to find another property. As the market slows, inventory may increase, and it’ll be easier to get a good deal, but the price of your property will also be falling. Deciding to sell is an important decision, not an easy one, that must be made carefully.
Selling your rental? Inventory may not be as much of an issue if you’re selling your rental property and not needing a replacement residence. A rising inventory may mean falling home prices and reduced demand for rentals. Rental values are currently very strong throughout Massachusetts.
If you haven’t conducted a CMA, or received an offer on your property recently, you may not be aware of the current market value. It’s worth your time to request an offer to get an idea of how much you could quickly walk away with by selling your property for cash to professional and credible investors (who are also licensed appraisers in Massachusetts). We’ll provide you with all the information you need to make an informed selling choice. Please read our ebook for more about the selling process.