Signs that it’s time to sell the house
A home always holds sentimental value but real estate is about investment. If homeowners find themselves considering selling, it can bring up an array of emotions as well as question marks. How can homeowners decide whether it’s time to sell the house or keep it? The reasons to sell may range from emotional and financial reasons to predictable causes and unexpected situations. Bay to Gulf Holdings, a real estate investment firm, highlights the signs for homeowners that it’s time to sell the house.
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It’s a seller’s market
A seller’s market is an economic situation in which goods are scarce and sellers can keep prices high. This means that homeowners can make a return on investment by selling the house. But how does one gauge that the market is hot for a great sale?
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- Increase in brokerage activity: If homes in the owner’s zip code are moving fast, it’s a sign to sell.
- Price/sq ft: If the price per square foot is increasing, it is an obvious sign to make a profit
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Local homes made bank on sale
Timing is everything when it comes to real estate. A home may instigate a bidding war or engage no interest for months. Staying alert for any sales in the neighborhood is the first step. If several neighbors have sold their homes for a high price, the possibility of a homeowner earning a premium amount is high as well. Keep an eye out on the trending prices, check online real estate listings in the neighborhood, and estimate the relationship of asking price to sale prices.
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Financial duress
Some homeowners sell homes to nurture the savings account while others may sell to ease mortgage burdens or take care of other incoming expenses. Struggling with property taxes and mortgage payments that are taking their toll on a homeowner’s mental and emotional well-being is not worth the trouble. Selling the house to live in a more affordable home is the best recourse. To know whether homeowners are managing their finances well, their monthly housing costs, including their mortgage interest, principal, property taxes, homeowners insurance, and HOA or condo fees, shouldn’t exceed 28% of their gross monthly income. Any imbalance in this percentage indicates it’s wiser to sell and live in another home, without such financial strains.
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Outgrowing a home
As time passes, homeowners find their living dynamics, emotional associations and family size evolves. Sometimes, the home just becomes too small for the growing family. At other times, life events such as divorce, death, job relocation, or illness may warrant a change of place. Homeowners need to make tough decisions when faced with such unexpected changes.
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High maintenance
Every piece of real estate needs maintenance such as landscaping, snow removal, septic service, recycling, and house cleaning. Repairs are a different matter altogether. When homeowners feel that the maintenance cost is depleting their bank account faster than it is refilling, buying a lower-maintenance real estate such as a condo or new construction would make sense. Even renting out and leaving all the maintenance troubles to the landlord may be appealing to some.
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Sufficient home equity
Homeowners can calculate their home equity by subtracting the amount they owe on all loans secured by their house from their appraised value. Selling too quickly after taking a mortgage and making only a down payment is not a good idea. Moreover, selling a house often includes costs associated with hiring a real estate agent, closing, and purchasing another home. Selling before the two-year mark means homeowners will need to pay the capital gains tax on the profit after sale. Therefore, at least a five-year time period is a safe period to hold the house and if the market is selling, calculate the equity and sell the house.
Why Bay to Gulf Holdings?
Bay to Gulf Holdings is the umbrella company that runs Rehab and Flip, and 911Houses.
Rehab and Flip specialize in helping investors looking for Florida investment opportunities through its custom searches, rich network, and industry insights. Whereas 911Houses helps homeowners sell their homes for quick cash, no matter the condition of the house.
With its quick closings, quick rehab turns, quick flips, convenient move-outs, paperwork handling, and smooth sale and purchase mechanisms, Bay to Gulf holdings make real estate investment in Florida a breeze.
To sell a home for quick cash or invest in lucrative real estate, email at investment.team@btgh.com or call at (813) 476-3199.
