I remember taking the two and a half hour trip to Lexington with my family to see Kentucky Football and Basketball games when I was a kid. In my mind at that time, Rupp Arena may as well have been
Three Reasons To Never Wait In Real Estate
People ask all the time; "Should I wait...until Spring....until next month...until I sell my house....until I find the perfect house...until....until...."
Well the answer to each of these is usually no. Why? Because in real estate waiting is never good and here are 3 reasons why.
1. Everything gets more expensive. Rates and historically appreciation of home prices go up. So whether you are buying or selling neither of these is really advantageous to wait out, or to try to time the market. Sure you should wait until you are ready or have a need to buy or sell, but you have to live somewhere, and unless you plan to sell and live in a tent in the woods somewhere, you will have to buy or pay rent somewhere, and it only gets more expensive your best bet is to buy and lock in the low rates now. Rates have been VERY low for several years now, the fact is they will not stay that way no matter which direction the market goes. The natural market rate for a long term risk like a 30 year mortgage is somewhere around 6-7%. We have been at or below 4% for years now, at some point this will come to an end. You do not want to be in the buyer or seller side of that if you do not have to be. Sure will the market adjust back to what is more normal? Yes absolutely. Remember people have to live somewhere, so they will. But if you are buying or selling you are working in a relatively short window of time, uncertainty and more costly lending costs will not be a good thing for anyone in a short time frame.
2. NOTHING good happens if you extend the time between deciding to buy, deciding to sell, getting an offer accepted, accepting an offer. In fact if things are going to fall apart there is a very high chance that the pending or in escrow period is when it will happen. Sure inspections, appraisals, and lending approval are given potential landmines to a transaction to step on in any deal. But the longer the period of time between any of the above decisions and the closing, the more that can go wrong. A few examples: Losing a job, getting transferred, surprise pregnancy, a death, accident, natural disaster, damage to property, changing a job (not a good idea in any situation in this time frame), buying a new car, market risk,....the possibilities are endless. Each day that is added to the traditional 30-45 day closing/pending/escrow period the more likely one of these happens. That is bad for everyone, the buyer, the seller, the agents, the professional services, the neighborhood, and pretty much everyone involved. So if at all possible all parties should want this time to be a short as possible. Do not skip inspections, appraisals, or any of the things needed to make sure the deal is sound, but do not overly delay the closing for any reason., Nothing good ever happens. Ask any Realtor they will tell you this is one of the 5 universal laws of the Real Estate Business.
3. Waiting adds to the stress of the transaction, Stress on buyers and sellers, on the lender, on the home. If you notice anything in real estate it is that a property immediately starts to decline once it is empty. Happens almost every time. The first thing is the smoke alarms start to chirp the second the owner moves out. Its like clock work. But think of all the other possibilities. Also waiting causes stress on sellers, and buyers, because its a period of transition, its not natural, the human instinct says that this isn't right. It creates undo stress. the unknown is not good. So not only will the home be stressed, especially in the winter in our area, with broad temperature swings, and spring with insane lawn growth and rain, summer with heat and lack of rain for lawns, and Fall with the added frustration if UK Football fans, wait wrong BLOG, but still you get the point. Waiting to decide to buy or sell also adds to stress, the fear of missing out or the fear of selling at the wrong time. They never go away, if you wait 6 months you will still feel that, its natural. So if the time in your situation is right to move. Move up, dow, or away or home, no matter if the situation is right for you don't wait, call me or your Realtor today.
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Its 2018 and time for my annual quick recap of last year and predictions for this year. I stick to the Lexington Ky market because that is the area I am most familiar with, BUT it is usually