Charlottesville Virginia real estate isn’t flying off the shelf the way it used to and neither are Albemarle County farms and estates or Wintergreen vacation and resort real estate. Many of the Albemarle homeowners with whom I work are in an enviable position of being able to hold on to their second home and/or investment property for a couple more years while waiting for the buyer’s market to shift back to a more neutral and balanced market. But is it really a good idea to postpone a sale? Their thinking, of course, is that they will make more money by holding off for a couple of years. The unfortunate reality of selling a Charlottesville home is different.
Selling Your Charlottesville, VA Home Today By the Numbers
Whether you are selling your primary Charlottesville home or Wintergreen Resort vacation property, consider this example: You own a property that your real estate agent believes will realistically fetch $500,000 in today’s repressed market. This leaves you feeling frustrated because just 24 months ago, you researched the value of your home and felt it would have sold in the $625,000 range. To make matters worse, your current Albemarle County real estate tax assessment is $565,000!! If you have the option, one of your thoughts might be to wait until the market improves. So, let’s say the Charlottesville Virginia real estate market has improved two years from now and you end up selling your home for $540,000 (about 7% more than today). In the interim two year period, let’s suppose you paid $3,000 per month on your mortgage ($72,000 over two years) and $8,196 in real estate taxes (two years worth) for a whopping $80,136 in essential carrying costs to which you may want to add utility and insurance costs. Your personal income tax environment will change the final picture, and if you are living in the property or generating rental income, that will help to. But, even factoring in those benefits, it is likely that at best, by waiting two years you will come away with the same net as if you sold the property today, and there is a good possibility that you will be worse off (lose more money later) by waiting to sell.
Compelling Reasons to Sell Your Charlottesville Real Estate Today
One more thing to consider which makes pricing right and selling your Charlottesville real estate, Albemarle County farms and estates, and Wintergreen Resort real estate today even more compelling is the time value of money. In addition to the out-of-pocket carrying costs outlined above, you also need to consider the revenue that you could generate with the net proceeds of a sale. To give you a round number example, let’s say you sold your property for $500,000, paid off the $300,000 mortgage, and invested the remaining $200,000 in a certificate of deposit for two years earning 5% interest… There’s another $20,000+ in income that you would be without had you help on to your property (assuming it was a second home or investment property).
The Bottom Line – Why Wait?
The bottom line: Waiting is very unlikely to be beneficial. You are bettor off contacting a professional Realtor® today, finding out what the market value of your Charlottesville real estate is, and getting your property on the market.
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Until my next post,
Your Charlottesville Real Estate Resource