Great Conditions For Home Sellers
Its straight forward good news if you are contemplating the sale of your property this year. Several trends continue: tight inventory, strong demand, affordable mortgage terms, a new generation of 1st time home buyers. All of this comes together to create 4 reasons to sell your home early in 2018.
Tax Break Creates Record Bonus Year
Love him or leave him, the Trump tax reform has companies far and wide handing out bonus checks this year. The tax reform of late 2017 has added fuel to the fire in our housing market.
People are excited about the economy. Will this last? I try to avoid politics, but it does seem at the moment that we have some exuberance going on. This creates a great environment to get your house on the market and get top dollar. I mean, I’m hearing about companies from Apple to Walmart handing out bonus checks. In January. Cash loaded home buyers has to top any list of reasons to sell your home!
Loans Cost Less With Low Interest Rates
Buyers coming to your home are going to be able to get a great home mortgage interest rate. It’s kind of ridiculous how low mortgage financing rates are just now. Buyers can afford more house with low rates. This is good news for you as a Seller and as a Buyer.
As a home seller, there are lots of excited potential home buyers out there right, who will be getting fantastic terms, at least at the beginning of 2018, while home mortgage rates are super low. Take advantage of that, get your home ready to sell early in 2018. And, as you evolve from seller to buyer – because, hey, you don’t want to be homeless, take advantage of those low rates to buy up and get your dream home!! It costs less in mortgaged dollars to buy up today, and get your ultimate dream home!
Money One of the Biggest reasons to sell your home early in 2018
It is about the money. My one concern, as the year unfolds, how will the tax break affect the market in the later part of the year. That’s something to consider, especially for the upper end of the market. Which, in Boulder, is sort of an entry level house these days. But, seriously, the tax breaks could have an impact in the later part of the year slowing sales because buyers will not be able to write off as much of their mortgage interest. That deduction is now capped 25% lower than it was previously, at $750,000.
So Far 2 Good Reasons to Sell and 1 Concern
The tax changes are both good and bad. Good, because buyers are better off today than last year. Home mortgage interest rates are seriously low. There are two more great reasons to get your home on the market in the early part of the year. One of the two is all about demographics
Millennial Home Buyer Demand
As we start up 2018, there is a huge amount of pent up Millennial home buyer demand. Along the lines of this, last week I saw a study that said Millennials want to make their own decisions. And enjoy some freedom. It makes sense. MIllennials are literally the generation that has been living in Mom & Dad’s basement. More than any generation, Millennials are ready for independence.
Take advantage of that pent up demand. Get your home on the market early in 2018. This gives you the better opportunity to have multiple offers with all the pent up demand and low home mortgage rates.
Again, I’ve seen a lot of savvy home sellers take advantage of the strong early Spring/late winter timing, to get top dollar and a quick close. And then rent back for 60 days after closing to secure their new home! Sometimes paying a fraction of the cost – say a buck a day – for rent with all the demand.
Home Prices Are Still Increasing
Along the Front Range, home values are still increasing. If you are interested in selling your home, an up market is the ideal time to make something happen. It’s no fun trying to sell when the market is flooded with houses or values are doing anything but going up. Market Watch points out that entry level buyers are fighting over slim pickings and competing with institutional house buyers.
Sellers – this is the sort of news you wait to hear. Not only are Millennial 1st time home buyers willing to overbid for your property, but they are also willing to compete with institutional investors. And Boulder has more than its fair share of those. This all makes for a wonderful scenario where today’s home sellers are well positioned to get top dollar when putting a home up for sale early in 2018.