The Top 3 Reasons You Should Sell Your Home

With Market Highs All Around You - Does It Make Sense to Sell now? Not Sure If It’s a Good Time to Sell? Here Are 3 Reasons Why You Should

Whether you’re hoping to purchase a dream home in the burbs, wanting to cash in on equity from record market highs, or maintenance and upkeep has become a burden, there could be any number of reasons you’ve contemplated selling your home. However, you might also be wondering if selling is the right decision for you. Maybe you’re not ready to move, or think it’s not the right time. You might even like the idea of getting some extra income from renting your home, instead.

Selling doesn’t make sense for every situation, but there are certainly circumstances in which a homeowner in South Boston would be better off doing so now.

1. Renting Out the House Is More of a Financial Burden than Selling 

It’s no secret that owning a home can be a lot of work, whether that’s literal work maintaining it, or even just managing the cost of the mortgage. Especially for people hoping to rent their place out, selling may just be the better option. Right now, the Southie market is flooded with a lot of competition for rentals, thanks to all of the luxury condos and apartments built recently in the area. There has been some noticeable saturation with apartments staying on the market longer as owners reach for higher rental prices and in some cases is only going to get worse, too, with all the new apartments under construction, most noticeably in the luxury market.

The last thing you want to add to this stiff competition is the weight of a pricey mortgage. Homes in South Boston, while less expensive than they are in other core Boston neighborhoods, don't exactly come cheap. When facing a high-cost monthly payment, it’s simply not worth the risk. In the recent sales market, it’s entirely possible that the monthly rental price that would attract renters wouldn’t even cover the cost of the mortgage and taxes, thanks to the uptick in sale prices. That’s not even to mention the costs of maintaining the home year over year. Or, in the case of condominium owners, hefty condo fees can add a significant burden in higher end buildings. These building types don't make as much sense for investments unless you're holding for the long term appreciation play.

At the end of the day, all those holding costs add up, and can get to the point where it doesn’t make sense to hold on to the house anymore.

2. You’re Planning a Major Life Event

Got a kid on the way? Traveling the world or relocating? Hoping to open a new business? Planning to buy or build a place? Maybe you’re getting married, and have a guest list in the triple digits. If there are any major life changes coming your way, you’re probably going to need some money to help pay for it. 

Some homeowners don’t do well with knowing that, despite the value of their home, they don’t have access to that amount in cold hard cash. They’d rather see that money in their savings account than have that value represented in the four walls they call home. If this sounds like you, then it’s probably time to sell. 

Depending on factors such as how much you’ve paid off your mortgage or how much the property has appreciated in value, your home likely has positive equity that can be converted to a sizable amount of cash. 

Whatever life events you have planned for the near future, that money could be a significant help in paying for what’s to come.

3. Inventory Is Low

I know, I know—you’ve heard this a million times from every agent you come across. But the fact of the matter is, it’s true. Supply and demand always controls the marketplace (unless there’s undue government interference). Right now, the inventory for existing homes for sale are historically low especially for specific types of homes. Low supply creates upward pressure on prices, meaning the fewer homes there are for sale, the higher the price tag can run. 

Combine the low housing inventory with the increasing demand for homes in South Boston, and you may get more for your home than you think. 

This is especially true for people whose homes don’t have much differentiation from what’s been built in the area. Will your home be competing with the 1474 currently under construction? You might not want to wait for the market to shift, because then not only do you run the risk of getting less for your home, but it could also take longer for your home to sell, leading to price decreases. Unique homes, homes having awesome characteristics, are the ones that sell well in a high supply, lower demand segment of the market, and if your house is too similar to those around you, there might not be much to make it stand out to the buyers, whose options are vast.

Selling right now doesn't make sense for everyone, but taking equity off the table for cash could be the right move depending on your situation.

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Have any questions? As an owner, is now a right time to sell and take equity off the table? For a free consultation or if you have further questions, please message me directly or chat with me here.

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Chris Fitzpatrick is a licensed real estate broker in South Boston. He focuses on adding value in the form of creating proprietary real estate market data, predictive analytics, and technology helping sellers, buyers, and developers. Chris can talk your ear off about the benefits of yoga, loves to travel, is passionate about entrepreneurship, and loves rooting for the underdog.