Weighing the Pros and Cons of Selling Your Home in 2022
Deciding to sell your home, especially in this market, is not an easy one! Lean to this blog to help you navigate the pros and cons of selling in 2022.
I really wish I could tell you this was an easy decision..
..but the decision to sell your home in 2022 is not one that you can take lightly. Despite this being one of the best seller’s markets ever, it doesn’t come without consequences either!
The market is perfect for commanding the most money for your home. However, as we are all aware, money is not always everything! So let’s break this decision down into both pros and cons of selling in 2022, starting with the cons.
The Cons
Con 1 – You don’t have your next place lined up
A realistic concern of selling in this market is that when you do sell, you then have to find a house! While finding a home isn’t the easiest process right now, there are strategies that you and your Realtor can deploy to make sure you have the best chance of getting in a home before you move out of your current one.
Con 2 – It wasn’t just your property value that rose
Your property value has gone up, that means other homes in your area have also gone up in price! So if you are looking to make a move within your same community, understand that your next home likely appreciated just as much as the one you are moving out of. However, if you are moving to a different area or different community nearby, you may have more buying power.
Con 3 – Opening your home up for showings.
Most buyers need to step inside a home before they purchase it. With the pandemic, that has made things complicated – especially if you have health concerns. If you are concerned about letting individuals in your home, you may want to consider holding off for a while.
The Pros
Pro 1 – More money!
There is no doubt – you can get a lot more money for your house than you could 18, 12, even 6-months ago. Selling now would likely give you a significant return on your investment. In Frisco for example, home values have increased nearly 30% in just 1 year. Putting numbers behind that, a $500,000 home in 2020 would have appreciated to $650,000 in 2021! Many sellers are finding that the extra equity that they’ve built up will allow them to get into their absolute dream home. Wouldn’t that be nice?
Pro 2 – Quicker sales
Homes don’t last long in this market which means less headache for sellers. Looking back to 2019, the median days on market was 40 days which means you would have to deal with people scheduling showings for over a month! In this market, it is pretty typical to have a home on market for 1-2 weeks. Many sellers are now limiting showings to a long weekend which makes it WAY more convenient to you as the seller.
Pro 3 – More leverage and favorable terms
This is VERY important. Sellers have all the leverage in this market which is very much needed. Why? Because once you sell this home, you will become a buyer. In order to have a truly successful sale, we need to make sure that terms are set up in a way to give you the most power (and time) to get into another house before you have to move out of your current home. This typically takes the form of getting a leaseback on your home, but there are several strategies that can be deployed to make sure you have a place to move after you sell.
Pro 4 – Take advantage of favorable interest rates
Similar to point 3, it’s important to not only think of selling the home, but also what it means when you become a buyer. While interest rates for mortgages aren’t as great as they were a few months ago, they are still in a great place! However, interest rates are likely going to continue to rise over the next year. Selling your home now means you can lock in a more favorable interest rate on your next home.
Pro 5 – We don’t know how long this demand will last
The market can change at any point in time. Selling now ensures you capitalize on one of the best sellers markets that has ever existed!
What will you do?
The decision to list or not to list is not an easy decision to make as there are a lot of factors to consider. I highly recommend reaching out to your Realtor early on in the process so that they can help you navigate some of the more complex decisions you will need to make. The earlier the better!
