How Rising Home Prices Can Mean Trouble for Some Home Sellers

In many ways, the housing market today is booming. Homes prices are nearing or beating record highs across areas like Sacramento, Folsom, Roseville, El Dorado Hills, and even some of the nearby towns and cities. That generally means that homes are in high demand, and that selling your home will usually help net you some great equity.

It’s considered by many to be a “seller’s market,” and in many ways that is true. But that market comes at a cost. Those with distressed homes often find that these rising home prices can actually cause them more harm than good.

The Problems for Sellers During a Seller’s Market

Seller’s markets may mean that your home is worth more, but it also means that selling your home can cause you problems. The following issues may affect those trying to sell their home in the NorCal market:

• Pricing Out for Fast Home Sales – The greatest challenge posed by the housing market is that those with distressed homes looking to sell their homes quickly may find that buyers are priced out of fast sales. The more expensive the home, the more buyers are going to be careful about what they invest in. If you need to sell a home quickly due to a move, foreclosure, inheritance, etc., and the home isn’t in the best shape, your chances of completing that sale fast are very small. You’d have to offer a massive discount, and most traditional home buyers won’t take on homes that need massive repairs.
• Little Extra Money – Similarly, as the costs of homes go up, so too does the down payment. Many buyers are finding they have to give all of their savings in order to buy a home, leaving almost no money left over. If you have repairs that need to be completed, the likelihood of finding a buyer with extra cash to complete those repairs is very low. Most banks also will not give loans to those buying damaged homes, and if you bought the home for a high cost, chances are you do not have much extra money either to do the repairs yourself.

So while it may be a sellers market. It is not the right market for all sellers. Many will find that this “great” market is actually one that can cause you to lose out on potential value, and may even make it difficult to sell your home. That is why Homestead Group is here to buy homes for cash. We buy any home, no matter its condition, and close in 10 days or less to save you trouble.

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