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Selling Your Home In 2022: Yay Or Nay?

Thursday, October 13, 2022   /   by Addison Cassady

Selling Your Home In 2022: Yay Or Nay?

Selling Your Home In 2022: Yay Or Nay?
Key Takeaways:
· Home prices are expected to fall in the next few years.
· Mortgage rates are expected to rise in the next few years.
· You may be able to get a higher price for your home if you sell in 2022.
· More taxes may apply if you sell your home in 2022.
· You may need to move quickly if you do sell your home.
· You may not be able to find another home to buy on the same budget if you sell your home in 2022.
· Kathy Hames Team, West USA Realty, offers realty services to customers in Litchfield Park, AZ, and the surrounding areas.

The decision to sell your home or wait is a big one. It's not one to be taken lightly! You need to consider all the pros and cons before deciding. Kathy Hames Team, West USA, will look at some factors you must consider when choosing to sell in 2022.

Downsides of Selling Your Home in 2022

Let’s investigate the downsides if you sell your home in 2022:

1. Take Advantage of the Housing Shortage

The housing shortage affecting many parts of the country is expected to continue in the following years. It means that there will be more buyers than homes available for sale, which allows you to ask for a higher price for your home.

2. Difficulty Finding another Home to Buy

Sell your home in 2022 and don't already have another one lined up. It may not be easy to find another suitable property to purchase. Fewer homes will likely be on the market, and more buyers will compete for those properties.

3. Make More Equity in Your Home

If you keep paying down your mortgage on time, you will likely accumulate more equity in your home in the coming years. So, you will probably get a higher price for your home since the buyer can get a loan for a smaller percentage of the purchase price.

4. You May Not Get Your Asking Price

You may not get your asking price if you sell in 2022. The year is ending, and you might not be able to find buyers during this time of the year easily. People are usually planning their Christmas holidays, which significantly hits their pockets. Also, the housing market is expected to cool off slightly in the next few years. While prices are likely to rise, they will do so at a slower pace than in recent times.

5. You May Need to Make Some Repairs

If you want to sell your home in 2022, you may need time to make some repairs. Homes in good condition tend to sell for more than those that need work. If you're not planning on making any repairs, it's important to factor this into your asking price.

6. You May Need to Stage Your Home

If you want to sell your home in 2022, you may need time to stage your home. If you're unfamiliar with staging, it's simply the process of making your home look more appealing to potential buyers. It involves anything from decluttering to rearranging furniture. Staged homes are likely to sell for more than those not staged. So, you will need some to stage your property.

Click here to find out when is a good time to sell or wait in the housing market.

Upsides of Selling Your Home in 2022

Here are the upsides of selling your home in 2022:
Upsides of Selling Your Home in 2022

1. Prices are at the Top of the Housing Market Cycle

The housing market is cyclical, meaning prices go up and down over time. We are currently at the top of the cycle, so prices will likely drop in the next few years. You may be able to get a higher price in 2022 than you would if you wait until 2023 or 2024.

Also, read our blog on how the housing market is affected during a recession.

2. Mortgage Rates Are Expected to Rise in the Next Few Years

Mortgage rates are expected to rise in the next few years, so your monthly mortgage payments will go up if you don't sell your home before. If you sell in 2022, you'll lock in today's low mortgage rates, preventing your payments from going up in the future.

3. Use the Extra Cash For Other Purposes.

If you sell your home in 2022 and profit from the sale, you can use the extra cash for other purposes, such as investing, paying off debt, or saving for retirement. Alternatively, if you need to move but don't want to buy another home right away, selling your current home can give you the flexibility to rent until you're ready to buy again.

4. Downsize and Save Money on Living Expenses

Suppose you are empty nesters or don't need as much space as you currently have. In that case, downsizing can help you save substantially on living expenses such as utilities, property taxes, and homeowners insurance. Additionally, downsizing makes it easier to maintain and keep your home clean.

5. Take Advantage of Tax Breaks

You can benefit from certain tax breaks scheduled to expire at the end of 2022. Several changes to the tax code would make it more advantageous to sell your home in 2022 rather than wait until later. These changes include increasing the standard deduction and eliminating the capital gains tax on the sale of a primary residence. These changes might not continue in the coming years. Thus, selling your home in 2022 could be a wise financial decision.

For example, if you profit from the sale of your home, you may be able to exclude up to $250,000 of the gain from your taxes (or up to $500,000 if you're married and filing jointly). Consult with a tax advisor to check if you qualify for any tax breaks when selling your home.

6. It's a Seller's Market

In general, it's currently a seller's market, meaning more buyers than homes are available for sale. This imbalance is driving up prices and making it easier for sellers to find buyers quickly. If you want to sell your home, now is a good time.

Need Realty Services in Litchfield Park, AZ? No Problem!

If you want a new home or considering selling your current one, I would be honored to assist you. Kathy Hames Team, West USA Realty serving Litchfield Park, AZ, has the experience and expertise necessary to guide you through each real estate step. I understand that buying or selling a home can be a daunting task and can make you feel confident and reassured at every stage. Contact us today to sign up for a free consultation and find out your home’s estimate.

Kathy Hames Team | West USA Realty
Kathy Hames
2920 N Litchfield Rd #100
Gooodyear, AZ 85395

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