Real estate is an excellent investment without a question. When you own real estate, you can make a lot of money. But how can you tell whether you’ve been in possession of a property for too long?
Reason 1. They are waiting for peak market to come back.
One of the reasons why individuals hold onto a property for so long is to wait for the real estate market peak! They expect to make a specific percentage on their investment, but make sure things like taxes and your initial investment are taken into account. It’s very important to know your numbers and also to be aware of what your monthly holding costs are.
Reason 2. They inherited it from family
Another reason people hang onto a property for too long is because they acquired it from a close relative, such as their parents or grandparents. They wish to maintain that property forever, even though they have no plans to live there, rent it out, or build on it. It could even be in a different state! They don’t care whether the annual taxes or homeowner’s association fees are a touch too expensive for their budget. They wish to keep the house for as long as feasible.
Reason 3. They plan to build
Another reason people cling onto a property for too long is that they intend to build on it. They may have done extensive study on the neighborhood and determined that it is the ideal fit for them and their family, but they are unable to build. Maybe they’re having trouble deciding on the ideal floor plan for their dream home. They hold on to the dream of building, but they never do. They do, however, pay taxes and possibly homeowner’s association fees, but they keep the property in the hopes of one day building their home.
Reason 4. They want too much money
One of the most prevalent reasons why people hold onto a property for too long is that they want too much money. They have an unreasonable expectation of how much their home is worth and are unwilling to sell for less than that. Sellers who have their home listed well above market value are likely not interested in selling and will be offended if their asking price is reduced.
Reason 5. They have fond memories
Another reason people hang onto a home for too long is because they have positive memories of it. Emotions are difficult to ignore. Perhaps their grandmother used to live there and they spent their childhoods in the kitchen with her. It can be a tremendously difficult feeling to overcome, and it’s an understandable reason why individuals cling onto a home for so long.