Why Right Now May Be the Best Time to Sell a Home

| March 29, 2011 | 0 Comments More
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If you are considering selling your home, now is definitely the best time to do it. As a result of some very significant reforms in the mortgage industry over the past year, the market is leaning heavily in favor of sellers. As a result of these reforms, potential buyers are aware of what they can afford and most have already been pre-approved for financing and are ready to buy. This is why right now may be the best time to sell a home.

For the past decade, lenders were bending traditional financing rules in order to sell their mortgage programs. As a result, many borrowers were able to purchase a home worth far more than they could actually afford under traditional lending programs. Additionally, lenders were extending credit to home buyers with bad credit histories through alternative lending with outrageous interest rates and terms that made the loans unaffordable for most of the borrowers.

These practices did not stop consumers from buying, in fact they had the opposite effect. The market was at one point, very saturated with home buyers. This served to push housing prices to an all time low, because buyers controlled the market and could demand lower prices.

Over the past year, as the government began to put in place reforms designed to stop unfair lending practices, lenders were forced to eliminate many of the alternative mortgage programs offered in the past. In addition, rising foreclosure rates resulting from the unfair lending practices have started to scare consumers and make them less likely to buy houses.

To alleviate the home buyer’s lack of trust, lenders have put into place many incentive programs geared toward qualified buyers who would like to buy a home. First time buyer assistance and seasoned home owner credits are starting to bring potential home buyers back to the market. These incentives have helped the home buyer, but they have also been beneficial for sellers. Housing prices are once again on the rise across the country.

As a result of the recent changes in the mortgage industry, and the rising trend in housing prices, you may be debating whether to sell your house. Now may be the best time to sell a home. The advantages in your favor right now include the lending changes, which mean that you will deal with potential buyers who know how much house they can afford to purchase and have already spoken with lenders about mortgage programs and eligibility. You may also be able to draw a higher sale price right now, than at any point during the last decade. It really is a seller’s market and with these advantages on your side, you should start giving serious consideration to whether they can work in your favor.

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Category: Blog, Selling a Home

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