The real estate closing process is always tricky, whether you're a first-time seller or have done it a million times. Fortunately, accepting a cash offer simplifies the selling process because fewer parties are involved, there is less paperwork, the schedule can be accelerated, and the chance of the deal falling through is minimized.
Local market trends might help you decide whether it's best to act immediately or wait for the right moment to sell or buy. After all, making informed decisions might greatly influence how much money or savings you get.
With Ash Creek Properties, you can receive a cash offer within 24 hours, with no risk of the buyer’s mortgage falling through.
What is the cost of selling a house in Oregon? The amount of money you keep after selling your residence is determined by various factors, including which repairs and upgrades you do to prepare your house for sale, if you make any concessions or give incentives to buyers, state and local taxes, and closing expenses, and your outstanding mortgage balance.
Since 2020, buyers have been pounded by low inventory, fierce competition, and significant price increases, but quickly rising mortgage rates are making it much more difficult to find an affordable house. Homebuyers are left wondering when the market will experience some respite, and home prices will begin to decline.
According to the United States Census Bureau, Americans move an average of 11.7 times throughout their lives. Bureau of the Census People sells their houses for a variety of reasons, ranging from personal connections to physical surroundings.
If you're wondering whether now is a good time to sell your home, the answer is now.
How’s the market?
Supply chain interruptions are a problem in almost every business right now. This is also true in the present housing market in the United States when buyer demand significantly outnumbers house supply. Buyers are still ready to move, but in many regions of the country, a lack of available houses is contributing to soaring housing prices. As a result, it's still a seller's market, which favors those who want to sell immediately.
Reasons why you should sell your home
1. Interest rates are projected to rise, although they are expected to remain low:
While mortgage interest rates have been historically low for years – and have achieved new lows many times during the COVID-19 epidemic – they are expected to rise at least slightly in 2022. Realtor.com predicts that mortgage interest rates will average around 3.3% throughout the year and rise to 3.6% toward the end of 2022. What this means is that the market will still be active despite the expected rise in home prices, and this would balance out the high demand for houses amidst the limited supply,
2. To take advantage of the seller’s market
A seller’s market generally favors the home seller (vis a vis buyer’s market). This means that the supply of homes is thin and there is not enough inventory to meet buyer demand.
In a seller’s market, it is expected that homes can sell for over the asking price and there would be multiple bids and ‘bidding wars’, as there aren’t many listings to choose from. As a seller, this means you many not need to make concessions or negotiate, and your home will sell quickly.
Josh Cooley, owner of a successful real estate business in Eugene, Oregon, wrote in his November 2021 Forbes article:
2021 is a strong seller’s market — and we expect that trend to continue in 2022. A combination of factors, including historically low mortgage rates and a shortage of available homes, has continued to drive up sales prices and buyer demand.
With home values that are quite a bit higher than the national average, and rising fast, Oregon is a strong seller’s market. Listing prices are skyrocketing due to the low amount of inventory. In recent years, Oregon has attracted a wave of new residents.
3. You need to move:
It is still viable to sell your property and get a new one if you need to relocate for whatever reason. You may be concerned about your capacity to pay your mortgage if you lose your work. Selling may be a suitable option if this is the case. Others, on the other hand, are choosing for a lifestyle shift that includes moving to a new state, more space for a growing family, or a larger footprint for permanent work-from-home space.
4. Lastly and most importantly inventory is at an all-time low
Purchaser demand is so high, the available homes for sale in the market are running out. As reported in Realtor.com in January:
the graph indicates that over the previous four years, the number of new listings on the market has plummeted. In addition, the graph shows that carry-over inventory has decreased in recent years. This is due to the fact that listings are no longer staying on the market long enough to roll over from month to month. In other words, unlike before the pandemic, properties are not lingering on the market for months.
Conclusion
Anyone considering selling their house should act quickly. When demand is great and supply is low, a seller will always negotiate the best bargain. That is exactly how the real estate market is right now. As many homeowners wait to place their homes on the market in the spring and early summer, inventory (and thus your competition) will rise later this year.
As these newly constructed homes are completed, they will compete with your home. This presents you with a fantastic chance right now. Don't wait for your local market to become more competitive.
If you're on the fence about selling and with all the process and preparation to go through to put up a house on the market, it will take time and a lot of hassle but don’t worry! Ash Creek Properties provides an all-cash offer for your home, with no repairs, and improvements necessary. Close and move out on the date of your choosing, contact us today!
What Is Seller Carryback?
What exactly is a seller carryback? A seller carryback is simply finance supplied by the owner. This may also be referred to as seller financing or owner carry (OWC). A seller financing arrangement allows a buyer to pay the seller in installments rather than a standard mortgage through a bank, credit union, or other financial institution. A seller financing arrangement works similarly to a mortgage loan. Still, it eliminates the middlemen by allowing the house seller to own and manage the debt rather than a traditional lender.
How Seller Carryback can help in minimizing or avoiding high taxes
Offering owner financing to the buyer of a property can help you move a property while also helping you save money on your tax bill. Owner financing is a process by which you offer a mortgage loan to the buyer of a property, which has the potential to help both you and the buyer.
When you sell a piece of property using seller financing, it's referred to as an installment sale rather than a traditional real estate transaction. When you sell a house or a piece of land, the seller usually gives you a lump sum payment on the closing day. In an installment sale, the buyer pays a down payment on the closing date and then makes monthly payments during the contract's term.
You can spread the profit over several years when you sell with owner financing and record it as an installment sale. Instead of paying all of your capital gains taxes in the first year, you pay a considerably less amount when the money comes in. This allows you to stretch the tax burden out across several years. You may have to pay a significant amount of capital gains taxes if you sell a significantly increased value property.
Using the installment plan has several advantages:
It allows you to postpone paying taxes on capital gains from the sale of your home.
An installment sale can be structured such that payments and related gains are deferred until a tax-advantaged year.
Even if the buyer may have merely provided the seller an installment note debt, the installment method might be appealing to a buyer since it gives a complete stepped-up basis in the bought property in an amount equal to the agreed-upon purchase price.
Bottomline
In the best of circumstances, writing any legally binding contract on your own is difficult—and when it comes to a real estate deal, the contract is only one aspect of the process. There are other more forms and elements to consider, such as title insurance, property rights transfer, and so forth.
You might jeopardize your finances if you don't do everything correctly. And if your issue is only having a hard time looking for buyers for the house that you're selling, Ash Creek is here for you to make you an all-cash offer for your home. Close and move out on the date of your choosing. Contact us today.
If you're seeking to sell a condo that isn't in a major city (in Beaverton or McMinnville for example), you might be concerned about how long it will take to sell. But top real estate agents say not to worry—even in a densely populated location, condos appeal to a specific type of buyer: one who values convenience.
So you're getting ready to sell a rental? The fact is, selling a rental property isn't always simple, and there's a major difference between selling a vacant house and selling one that's inhabited. Cleaning up an empty home, working with an agent or sales platform, listing it, going through the dance of open houses, and hopefully selling it quickly is very straightforward. Selling a rented home, on the other hand, is a very different issue.
Sellers who want the best chance of getting their homes sold quickly and at a higher price need to know when the best time is to put them up for sale. An in-depth analysis of home sales data from 2009 through 2021 conducted by ATTOM Data Solutions shows that there are actually two optimal months. Find out in this week's article.
