For residents living in Idaho and the Treasure Valley, it’s evident that the local real estate market is hot. Anyone living here who chooses to sell their home can usually command a king’s ransom for their house and get multiple buyers with limited contingencies.
But even though this market is a boon for home sellers as there are lots of interested and well-qualified buyers looking for a property, there are reasons why you shouldn’t sell your home in this market.
Read on to find out some of the reasons why it’s best not to sell your home, even during this robust seller’s market.
10 Reasons Not to Sell Your Home
Lack of Inventory
This reason sounds counterintuitive as this is why home values in the area have appreciated rapidly over the past couple of years. But if you decide to sell your home, do you have another place lined up to buy?
That’s a dilemma facing many residents who have equity in their homes – where are they going to move to once they sell their home? Unless they’re planning on renting, staying with relatives, or moving out of state to a more buyer-friendly locale, this is a big reason for not moving during a seller’s market.
With lots of people working from home, the idea of moving could affect their career productivity. Having to take time off to relocate and then unpack could hamper their work product, especially if they’re working from home. Having to be inconvenienced for open houses could also be detrimental to their professional success.
And then there’s the health aspect of the situation. While vaccines are slowly rolling out, there’s still concern about the disease’s spread, and having strangers stroll through the home may not be a good idea. While REALTORS® emphasizes hygiene and cleanliness, there’s still a small chance COVID can find a way into your home.
You Haven’t Lived in Current House for Two Years
While it may seem like a good idea to capitalize on a hot market, if you haven’t lived in your current home for at least two years, you’ll be on the hook for capital gains taxes, which could put a significant dent in the proceeds from selling your home. This market will remain hot for a while, so it’s best to wait for at least two years.
How many times have you lived in a house where you couldn’t stand the neighbors? If you’re like most people, there’s probably been a time or two in your lifetime. But now, you’re living in a house where you have great neighbors with whom you have a great relationship. Is it worth rolling the dice on a different home that may not have as good neighbors?
Your House Needs Work
While it may be tempting to sell your house, a home inspection may reveal significant issues that would need to be addressed before closing the sale. Also, if your home is older, there’s a possibility that it needs some serious updating to realize the value of today’s homes.
A REALTOR® would be able to provide you some direction on what needs to be updated and repaired. They can also guide you to what improvements would maximize the value of your home.
If you’re planning on trading up after selling your home, you’ll also have the burden of paying higher property taxes on your new house.
Mortgage Interest Rates
In 2020, mortgage interest rates reached historic lows, fueling a frenzy of not only people buying houses but people refinancing. If you have a low-interest rate now, selling your existing home and purchasing a new one may wind up costing you more as you may get a higher interest rate.
At the time of this writing, mortgage interest rates have crept up past 3% APR. It’s always a good idea to speak to a lending professional to find out the specifics of your unique situation. Having a great mortgage interest rate is hard to replace.
Older Kids Moving Out Soon
If you have older teenagers, the day is quickly approaching when they’ll move out. If you lack space in your existing home, waiting until the move out will give you more room. It also gives you peace of mind of not having to worry about getting a larger house or dealing with a new mortgage.
The Buying/Selling Process
The whole process of buying and selling a property can be extremely stressful. While homes are selling in today’s market above asking and usually with inspections waived, there’s still a lot that can derail the sale.
The aspect of simultaneously (attempting) to buy another property, especially in this market, is not something people are looking forward to enduring. Selling the house may be the easy part, but it’s the flipside that fosters anxiety.
Leaving a Legacy
Perhaps the home you’re living in is the “family home” and is remembered by the family as their home. There are memories and a particular fondness that people have with their homes. Selling it would undoubtedly have it exit from the family, and maybe you want to keep it within the family for sentimental reasons.
The Last Word
Selling your house in this market is appealing, especially if you have a lot of equity in your home. With home values here in the Treasure Valley tripling in the last ten years, it would make sense to want to sell to capitalize on those gains. However, as we detailed above, there are at least ten genuine reasons why you may not want to sell your home right now, or at all, which is perfectly acceptable.
It doesn’t hurt to have a conversation with a REALTOR® to decide if it makes sense to sell now or wait. Making a move is an important decision that you shouldn’t take lightly.
If you’re curious to know what your home is worth, we have a new tool that allows you to see the value of your home instantly. Just answer a few questions, and you’ll receive a computer-generated price. This valuation will not take the place of speaking with a real estate professional who is more in tune with the market but does provide a basis for conversation.