There’s no doubt about it – real estate is a great investment and with so many folks able to take advantage of the VA program in Killeen plus so many renters overall it can seem like a no-brainer. There is huge money-making potential when you own real estate, however, there is still a ton of risk and things can and do go wrong, so how do you know if you’ve held a property too long?
Reason 1. They are waiting for peak prices
Honestly, the market in Killeen and Temple has been great the last few years but did you know that overall prices only exceeded 2010 levels last year? One of the reasons why people hold onto a property too long is that they are waiting for the prices of the real estate market to really get above those former levels but the truth is it may be reaching a peak. The real estate bubble of 2004-2005 is not likely to repeat in most areas. Some real estate owners are watching the market regularly and aren’t seeing the huge price increase they were hoping for. They watch it increase for a few years, then it corrects itself and goes back to where they bought it. They have a plan to make a certain percentage on their investment, but taking into account 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 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 owe too much money
It can be hard to sell a property when you owe close to what it’s worth. If you list with an agent then by the time you pay for commissions and repairs you may even lose money! This is especially true for home purchased with VA loans as buyers often put very little down for a down payment and the first 10 years of a loan are primarily interest. Luckily, we do have some no-traditional solutions that can help and give you the ability to get out of a house you might otherwise be stuck with.
Reason 4. They want too much money
A very common reason why people hold onto a property too long in Killeen, Texas 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 Killeen, Texas.