Why People Hold onto A Property
There’s no doubt about it – real estate is an excellent investment. There is enormous money-making potential when you own rental property and other real estate firms. But how do you know if you’ve held a property too long? There are many signs and effects of continuing ownership of a residence for too long. Most homeowners in tough situations should be focused more on ways to “sell my house fast Philadelphia” instead of holding onto the home. Eventually, some homeowners are faced with repair issues, while others experience economic hardship like a mortgage or tax foreclosure. In this blog post, our family-owned real estate company explains why some individuals will hold the home too long and some issues caused by this decision instead of selling the home.
Reason 1. They are waiting for the peak market to come back.
One of the reasons people hold onto a property too long in Philadelphia, Pennsylvania, is that they are waiting for the real estate market prices to double or triple! The real estate bubble of 2004-2005 is not bound to happen again soon. Some real estate owners are watching the market regularly and not seeing the massive price increase they were hoping for. They tend to increase for a few years, then it corrects themselves and returns to where they bought it. They have a plan to make a certain percentage on their investment. Still, considering the annual taxes and the original investment, it is starting to become more money invested than they will ever see come back through a sale without the real estate peak market.
Reason 2. They inherited it from family
Another reason why people hold onto a property too long is because they inherited it from a close family member, possibly their parents or grandparents. They want to hold onto that property forever to keep a piece of them in their lives, even though they never plan to live in it, rent it out, or build on a piece of vacant land. It might not even be in the same state! The annual taxes or homeowner’s association fees might be too much for their budget, but they don’t care. They want to hold onto the property as long as possible.
Reason 3. They plan to build
A more practical reason people hold onto a property too long is that they plan to build on it. Maybe they’ve done a ton of research on the neighborhood, and it’s a perfect fit for them and their family, but they can’t afford to build. Or maybe they can’t settle on the ideal floorplan for their dream home. They hang on to the dream of the building but never actually make it. They do, however, pay taxes and maybe even homeowner’s association fees, but they hold on to the property, hoping they will one day build their house.
Reason 4. They want too much money
A widespread reason why people hold onto a property too long in Philadelphia, Pennsylvania is straightforward: they want too much money. They have an unrealistic idea of their property’s worth and are not interested in selling for less than their ideal number. With their house listed over market value, sellers probably don’t want to sell and will be insulted at anything less than their unrealistic price tag. Most expired listings directly result from a seller requesting too much for their home, and the agent will take a chance listing the property with hopes of closing. A buyer rarely overpays for the house, so listing the home for the correct value is suggested to avoid obstacles to selling property.
Reason 5. They have fond memories
Another reason why people hold onto a property too long is that they might have fond memories. Emotions are hard to deny. Maybe their grandmother lived there, and they grew up in the kitchen making pumpkin pies for Thanksgiving with her or learning how to make pistachio thumbprint cookies in the dining nook. Maybe it was their first house as a married couple, and they have lots of happy memories of cuddling in the den and watching movies. Perhaps it’s the house their children grew up in, and they made notches in the door frame marking their growth. These are powerful emotions to override, and they are understandable reasons why people hold onto a property too long in Philadelphia.
Issues Holding onto Property Too Long
Many issues arise when homeowners hold onto a property much longer than they should. One of the main issues will be the economic effect; homeowners are responsible for annual property and school taxes. Most homeowners hold mortgages with interest rates; having onto a property too long can cost thousands and possibly subject the owner to pre-foreclosure and other issues. If a property is left vacant, the weather elements can cause damage and even structural problems. These vacant homes with a form of damage will receive hefty fines from the city or township that will continue accumulating until the repairs are completed.
Vacant homes are an absolute headache even beyond the financial issues. These abandoned homes attract squatters. A squatter is an individual residing at an address, not paying any rent, and against the homeowner’s request. It’s hard to believe, but some squatters will break the locks and illegally access the home. Evicting these individuals will cost money and usually takes two to four months to complete depending upon the area and local laws.
Sell a House to an Investor
If you’re a homeowner who thinks you have held onto a property for too long, Buying Property 215 will be able to help. Selling a home directly to a home investor allows for a quick cash sale. An off-the-market sale requires no house repairs or renovations; the buyer purchases the home in its current condition, completing no inspections. When you sell the property to an investor, you also avoid agent commissions, closing costs, and other fees. If it’s time to sell a house and you desire a cash sale completed within three weeks, contact Buying Property 215 to “sell my home.” We can guarantee the highest cash offer for your home!
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