There’s no doubt about it – real estate is a great investment. There is a 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 The Peak Market To Come Back
One of the reasons why people hold onto a property too long in Kalamazoo, MI is that they are waiting for the prices of the real estate market to double, or triple! Signs are showing we are definitely there however some real estate owners are watching the market regularly and still 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, while taking into account the annual taxes and the original investment.
Reason 2. They Inherited It From Family
Another reason why people hold onto a property too long is that they inherited it from a 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 floorplan 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 build their house.
Reason 4. They Want Too Much Money
A very common reason why people hold onto a property too long in Kalamazoo, MI 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 fond memories of the home. Emotions are hard to deny. Maybe their grandmother lived there and they grew up in the kitchen making pies for Thanksgiving or learning how to make cookies. Maybe it was their first house as a married couple and have lots of happy memories or 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 and they are understandable reasons why people hold onto a property too long in Kalamazoo, MI.
If you think you might be holding onto a property too long, send us a message or give Ryan Buys Houses a call at (269) 775-4095 to discuss your options in Kalamazoo, MI.