There’s no doubt about it – real estate is a great investment. There is huge money-making potential when you own real estate. But how do you know if you’ve held a property too long?
Reason 1. They are waiting for peak market to come back.
One of the reasons why people hold onto a property too long in Utica, NY is that they are waiting for the prices of the real estate market to double, or triple!
Honestly, the likelihood of the 2004-2006 real estate boom happening anytime soon is slim to none. Events like that rarely occur more than once in someones career. Homeowners oftentimes concern themselves with the intricacies of the market, analyzing every quarter percent climb or fall and feeling every bit of it! They may even be analyzing the market so much because they think they need to sell at just the precise time to make their money back.
Real estate prices will always continue to rise and fall along with factors such as the overall economy, federal interest rates, supply and demand, etc. What the real estate market will almost never do is double or triple your investment. Have you ever purchased a car for $10,000, looked to trade it in 3 years later and the dealership offer you $20,000? I didn’t think so! Homes are the same.
Reason 2. They inherited it from family
Another reason why people hold onto a property too long is that they inherited it from a really 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 even be a little 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 why 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 perfect floor plan for their dream home. They hang on to the dream of building, but never actually build. They do, however, pay taxes and maybe even homeowner’s association fees, but they hold on to the property with hopes that one day they will actually build their house.
If you are looking to build, our local Home Depot in New Hartford has one of the best home design centers (especially kitchens!) in the area! Go on down and speak with Carol, or log on to their website!
Reason 4. They want too much money
A very common reason why people hold onto a property too long in Utica, NY is very simple: they want too much money. They have an unrealistic idea of what they’re property is worth, and are not interested in selling for less than their ideal number. The sellers that have their house listed way over market value probably really don’t want to sell and will be insulted at anything less than their unrealistic price tag.
Reason 5. They have fond memories
Another reason why people hold onto a property too long is that they might have really 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 have lots of happy memories cuddling in the den watching movies. Maybe it’s the house their children grew up in and they made notches in the door frame marking their growth. These are all extremely strong emotions to override and they are understandable reasons why people hold onto a property too long in Utica, NY.