Buying a house is a big moment in many people’s lives. It is not just a transfer of money and the acquisition of a deed, it is a rite of passage that demonstrates that the new homeowner is responsible and financially stable.
Due to changes in the economy over the last thirty or forty years, many young people today will not be able to own their own home for a while. The proportion of 18 to 34 year olds who have their own place recently fell to a thirty year low. This is going to become a greater problem as time goes on.
When the baby boomer generation starts to decline, their houses will either be bequeathed to their children or will go on the market. The only problem is that if the current trend continues, young people will not be able to buy them. The average student loan debt now $26,700. Whether young people will not have good enough credit ratings to get a mortgage or they won’t be able to earn enough to pay both their student loan debt as well as the costs of a house, the outlook is not good.
Just as buying a house is a momentous decision, selling one can be just as difficult. If you purchased your property several decades ago, its ostensible value will have increased but whether it has in real terms relative to inflation is another thing. It is therefore difficult to gauge exactly how much your property is worth and what you can reasonably ask for it.
However, here are three reasons to sell your house and take on the challenge:
- It is easy. If you think to yourself one day ‘I want to sell my house’, it could feasibly be done within a week or two. Some realtors will offer to purchase your house for cash (albeit at a slightly reduced rate) so that they can renovate it and sell it on again, or keep it as a rental property. Either way, selling your house is not difficult is you may think.
- It is a good time of year to sell. Buying patterns around the country show that spring and summer are the busiest times of year for property sales. This is because many people want to find a place in preparation for the new school year, as well as the weather being warmer and generally more conducive to going about finding a property that suits them. This means that with more potential buyers, you’ll have a better chance of one of them wanting your property. Besides, competition will only increase the price.
- Mortgage rates are low. After the economic downturn of the last decade, mortgage interest rates have still not risen all that much. That means that buyers will have lower monthly costs, which means that they are more likely to want to buy. Capitalizing on this fact will only be possible for a little while longer because as the economy improves, mortgage rates will increase too.
This is a collaborated post.