Coming to the decision to sell your house, duplex, or apartment building is not a light matter. There are a lot of decisions to be made, like whether to use a licensed real estate agent or sell directly to a home buyer; where should you move next? Don’t let these questions delay your decision to sell your property. Here are four ways waiting to sell your property in Chicago will cost you.
Houses are in Demand
Waiting to sell your property in Chicago will cost you because there are still buyers for houses in the market. Mortgage rates are at an all-time low so now is a great time to put your house or building up for sale. With the impending market dip due to the Coronavirus economic shutdown, real estate will soon be flooding the market, and demand may start to wane. But for right now, there are still enough buyers in the market to buy all of the houses and multifamilies for sale. There are also buyers that have taken a large portion of their money out of the rapidly fluctuating stock market and need to invest it in real estate. Once these funds are used, they will stop purchasing real estate.
If you put your house up for sale right now, you will have less competition than if you wait until the market really starts to dip. Buyers will easily find your property in Chicago. Once the downward trend is realized, many sellers will use that as their queue to list their house for sale. That means, the market will soon become flooded and you will have lots of other competition for cash buyers in Chicago to review. In order to catch the buyer’s attention when the market is flooded, you will have to make sure your curb appeal and all necessary upgrades have been done, and you may have to accept a lower offer than you plan on, just to solidify a buyer.
If you wait to sell your property in Chicago and you start to realize that downward trend, that means the average sale price for your comparable properties will also be less than you were expecting. As a result, you may even have to accept a lower than market price offer to sell your house. This costs you the extra capital gain you could have had if you didn’t wait. When the market is flooded with houses for sale, the buyers have more power in selecting the house they want and are able to make lower offers because they have so many other options. Desperate sellers in markets like these will start accepting the lower offers, which compounds the dip in the overall housing market.
The longer you own the property for the year, the higher the percentage of taxes and dues you will owe. The annual taxes on the property are prorated based on how many days out of the year you own it, you will only receive credit for the part of the year you will not own the property. The same goes for homeowners association fees, only the part of the year you do not own the property will get refunded. These prorations are subject to the payment due dates. Most taxes are due at the end of the year, but some homeowners association fees are assessed at a different point in the year.