The Pros and Cons Of Selling Your House in 2020

The housing market this year has gone through some turmoil. However, despite the surrounding economic calamity that is going on, the housing market has continued to be strong, thanks to the federal reserve’s support.

There are still plenty of reasons to consider selling your home in the year 2020, but you should make sure that it is the right choice by asking yourself the following questions.

Pros To Selling

Your ability to sell your home will depend on the area you live in now. There are fewer buyers in the market right now, but the few in the market are serious. If you can find someone willing to make an offer, he will be able to close on your home.

If you need to sell your home, then it should be possible to sell it.

The pricier your home is, the more difficult it will be to sell. If you need to sell it faster, you can always lower the price. Take plenty of pictures and always work with professionals who understand your local real estate market to increase the speed at which your home will sell.

Interest rates are lower than ever

The federal reserve recently lowered interest rates down to 0%. This has made it possible for people to get mortgages at lower than 3% interest rate for the first time in history.

Historically as interest rates go down for mortgages, the corresponding price of a home sold increases. Low-interest rates may make it possible for you to find more buyers then you would have before. Lower interest rates mean that people’s monthly payments on their mortgages will be far less, and they will be able to afford a larger mortgage overall.

Do you have a starter home to sell?

Right now, in the current market, the more expensive the home is, the more difficult it is to sell. The homes that sell the quickest are the ones that are considered entry-level or within the lower 1/3 of home prices in a region.

If you have a home in this class, you’ll likely be able to find a buyer with ease. If the home you are trying to sell is in the upper end of your local market’s price range, you may encounter difficulty.

Can you still afford your current home?

A lot of people have recently experienced either loss of income or loss of a job. Now there are more people than at any point in history facing potential housing insecurity.

If you find yourself in this situation selling your home is a good idea. If you cannot afford to continue living there, then the only thing staying there will do is force you to foreclose. If you can sell you, you can claim whatever equity you have in it and then use that towards a new home purchase that is more affordable.

Try to capitalize on as much of the equity you have built as possible by selling quickly. It will only benefit your future financial prosperity. You can always start working your way up the homeownership ladder again after you finish the sale.

Cons To Selling

There are some caveats about selling in the current market, however. We do not know when things will return to normal, but because of the current situation, things are different than they typically are within the housing market. Keep these tips in mind to ensure you make the best decision for you.

Job market is unstable

Even if your job has been protected and you have not experienced any income loss, more people around the country have them at any point in history. This means that lots of potential buyers feel insecure about their job prospects right now.

People may be willing to pay less for a new home because of this insecurity. This may limit the price range in which your home will be sellable.

Have you recently refinanced your home?

If you took advantage of the federal reserves lowering of interest rates by refinancing your home, then selling your home may not offer as many benefits as possible.

Hopefully, the refinance on your mortgage will allow you to live in the home you already own more affordably. It will be difficult for you to find a better deal on a mortgage for a new home if you have recently refinanced your current home.

Are you willing to accept a lower price than you want for your home?

There are a lot of conditions that have suppressed demand and limited supply. Both of these things together have lowered the sale price of many homes throughout the country.

This is not ubiquitous, however. There are some markets where prices have increased. You will need to examine at your local real estate market to see which option makes the most sense for you.