Troy Stavros, Broker and Partner with the 865 Real Estate team stated, “We often hear of sellers waiting for prices to increase before putting their home on the market. While that might sound like a good idea, it’s quite possible that they could end up costing themselves money in the long run.”
Stavros agrees that there are circumstances that call for a wait and see approach. Those being if a seller is in a negative equity situation, or is in a situation where the use of equity in the home is needed for the down payment on a new home in Knoxville, and additional equity is needed.
For sellers not in those situations waiting to sell your Knoxville home may be the wrong thing to do. Why? Two main reasons:
1) While a sellers home is appreciating in value, so are the homes the seller will ultimately purchase. January saw the biggest year over year price increase on homes since 2006. For move-up buyers, waiting just doesn’t make sense.
2) According to the Mortgage Bankers Association, mortgage rates are expected to increase from the 3.5% range up to 4.4% in the next year. On a 30 year, $300,000 mortgage, this difference would cost a homeowner an additional $155 per month in payment or a whopping $55,853.49 in extra interest over the life of the loan.
Stavros concluded, “If rates and prices weren’t going up it would be a different story, but they are both going up and at what looks to be a brisk pace. Delaying will cost you money.”