Why You Should Sell Your House Before the End of the Year
It’s hard to believe it’s already December. Most people aren’t thinking about selling their house this time of year, which is why the market often slows down during the winter and picks back up during the spring. 2020 is no ordinary year, though. This may be one of the most active winter real estate markets in history!
Even in slow seasons, there are several benefits to selling a house before the end of the year. Whether you are in a situation where you need to sell quickly (divorce, job relocation, financial distress) or you have unwanted property that you have been thinking about selling, now is a good time to get the house on the market.
Time is Not on Your Side
The only disadvantage to listing your property now is time. Odds are, if you put your house up for sale in December, a traditional sale won’t close until at least January. You have to get the house ready for sale, hire a real estate agent, market it and review offers. Once you accept an offer, then you can expect at least the final escrow process. Home inspections need to be completed. Buyer financing typically needs to be finalized. Plenty of paperwork has to be filed to officially complete the sale. Most escrows will take 30-45 days to complete.
For those in a position to make a lot of money on a home sale (selling an inherited property, for instance), you have to look at the tax benefits of selling now. 2020 offers a lot of tax breaks because of the CARES Act and we don’t know exactly what the new administration will bring in terms of capital gains taxes. There may be some tax breaks that you can take advantage of if you get your sale closed before the end of this year. The average home seller is not affected by capital gains taxes as much as real estate investors or people selling off extra properties they happen to own (again, maybe an unwanted inheritance). It is definitely worth doing your research and talking to a tax advisor to see if selling your house before the end of the year will be beneficial or not.
Quick Home Selling Solutions
For those who need to sell their home soon or who will benefit from a year-end sale, you have to look at your time and make some tough decisions. Rather than a traditional home sales method (repairs, Realtor®, marketing, escrow, etc.), you can look into a cash sale or creative seller financing options.
A cash sale will definitely allow you to close the deal as quickly as possible. At PropertyLark, we’ve closed on homes in as few as seven days. So, we’re talking about finalizing the sale within weeks (before the year ends) rather than letting the transaction slip all the way into next year. We’re also talking about not having to spend the time or money to make repairs, as well as not having to make any more mortgage payments, property tax payments, homeowner’s insurance premiums, and other homeownership expenses that you’d continue paying while you waited for the deal to close. You can get out from under your property quickly and move out before the year ends.
Other Financing Options
You can also look into creative financing options depending on your situation. Those who own their houses outright could work out great lease options with buyers or investors. This can also result in a quicker sale and other financial incentives. Those who are in a less-desirable financial position might be able to make the best of a bad situation with a quick cash sale, lease option or subject-to financing arrangement with a real estate investor.
If you are thinking about selling your house before the end of the year, turn to PropertyLark. We can get you a quick cash offer (within 24 hours) or help you explore your other potential financing options. Please fill out the contact form on any page of this site to get started!