In my previous article, I highlighted the top 10 reasons you should not sell your commercial investment real estate.
To be fair, let’s also look at the homeowner. We can be easily pulled into the selling frenzy when we hear what homes are selling for in our area.
A windfall profit is a good reason to move quickly and sell. However, there are many reasons a homeowner needs to consider and possibly not sell at least for now.
Here are the top 10 reasons you should not sell your home:
10. Your kids are moving out soon.
You may not have enough space, but if you have older teenagers it is inevitable you may be approaching the empty-nester status shortly.
Put on the brakes and consider the freedom you may have not being tied to a large home and mortgage.
9. You have a good relationship with your neighbors.
Community is really important. If it is not to you, you possibly should reconsider getting to know your neighbors.
8. You are still living in the ‘80s.
If your decor is a blast from the past and a great location to hold an ‘80s-themed party you may want to invest into bringing your home into the new century.
Well-done and thought-out interior and exterior decor will be earned back in the future sale.
7. You feel your home is really special—and the price shows.
Your home is special to you, but it may not be to a buyer in the same way.
Keep in mind you cannot value an emotion or memories or the heart and soul you invested over the years. You need to price your home competitively, so look at your competition.
6. You really hate the selling and buying processes – (but the real reason is you feel brokers get paid too much).
I can write several articles (and have) on the merits of using a broker and the detriments of not.
Brokers bring many attributes to the transaction and offer you a level of comfort and protection you cannot get on your own. In using a broker, you will probably not hate the selling and buying process so much.
5. Your home is not ready for sale.
Here is another time a broker is invaluable: having a discerning eye walk through your home with you room-by-room, pointing out furnishings to remove, junk piles you just don’t see any more or that large piece of art from Uncle Joe you just can’t put in storage.
Hiring a maintenance man as well as a landscaper will be worth every penny as well as possibly having all your inspections done beforehand.
4. Consider your property taxes.
In California, you could say we are blessed by having our property taxes only reassessed when a sale occurs. If you purchased your home decades ago you would be shocked how much your property taxes would be on your house if purchased today.
3. Your interest rate.
Your loan terms are important. Interest rates just went up and that does rob you of your buying power. If your loan is tied to a really good rate, that has value.
2. You want to take your equity and buy the maximum home you possibly can.
Unlike commercial real estate, don’t view your home as an investment or a bank account. Contrary to what some may tell you, I believe your home should be viewed as a place to live not as a tax write-off.
This is why a home with a paid-off mortgage has value in many ways that you will not regret. A commercial investment is totally different.
And the number one reason a homeowner should not sell? You need to buy. Do you know why they call it a “seller’s” market?