By biden Homes on Long Island are currently selling for around $70,000 more than they were worth last year. The market is so hot that properties are selling in as little as two weeks.
If you own a home on Long Island, you might be wondering whether you too should sell. For many homeowners, the answer may be a clear “Yes!”
The pros and cons of selling your Long Island home
Should you sell your Long Island home? Maybe. The right decision depends on a multitude of factors.
If you own just the home you reside in, and you like it, you probably want to hang onto your property. But on the other hand, if you own property on Long Island that you don’t occupy, selling is a more reasonable option.
You’ll have to weigh an array of pros and cons to arrive at a decision, though.
The benefits to selling your home on Long Island
Let’s start with the benefits. There are three basic advantages to doing it now.
1.You’ll be selling in a hot market
The biggest benefit is being able to sell your home during a hot market. The current one is hot enough that you don’t have to worry about failing to make the sale. Unless your property is completely run down and neglected, the odds are it’s going to sell fast.
If you don’t want to have to deal with the cost and frustration of inspections and appraisals, you can sell your home to a private investor who’s willing to shoulder those responsibilities. For instance, companies like CoMax buy Long Island homes as-is for cash.
The advantages of selling in a hot market are endless. When the industry is this agitated, it’s virtually guaranteed that your property will sell.
2.You might make a sweet and unexpected profit
In the past, it’s not been unusual for prospective buyers to offer $3k-$5k above the asking price for a home they really love. But right now, bids are reaching astronomical heights of between $40,000 and $186,000 over asking price.
The average $1 million home on Long Island has been selling for $100,000 above asking price. Though you shouldn’t put your home on the market just to see whether it will attract an overly generous bid, this possibility is a bonus if you’ve already been thinking of selling.
3.Your cash flow won’t be cut off by another eviction moratorium
If another eviction moratorium occurs, your cash flow won’t be affected. Even though the moratorium has ended, a revival is still a possibility.
Although the U.S. Supreme Court killed the CDC’s initial eviction moratorium, another bill is on the table. If it should become law, it would grant legal authority to the CDC to declare a nationwide eviction moratorium for national health reasons.
Selling your Long Island home now will enable you to avoid having to absorb lost income from non-paying tenants in the future. If the CDC is given the legal power to declare another eviction moratorium, there’s no telling how long it could last.
Three drawbacks to selling your home on Long Island
1.You’ll miss out on potential income
Naturally, selling a rental property means foregoing future potential income. If you bought investment property to create further wealth, selling will negate that purpose.
If the economy turns around and the housing market recovers, you’ll find yourself wishing you’d held onto your property.
2.You won’t have an extra home
If your current residence becomes unlivable for any reason, or you get evicted yourself, owning an extra house means you’ll have somewhere to stay. Even if your extra home is rented out, you can give your tenants notice to vacate.
Despite an eviction moratorium, landlords are still allowed to evict tenants for certain legitimate reasons. For instance, if you need to move into the property, you can evict a tenant.
3.You might not find another home to buy
The housing market is so hot that it’s hard to find homes for sale. That’s the main reason Long Island homes are selling for such high prices: The demand has outpaced the supply.
If you sell your Long Island property and expect to buy another home just as quickly, you might be out of luck.
Own multiple properties? Selling your Long Island home is likely the best option
If you own rental property on Long Island, you’re probably better off selling now. Though the economy could bounce back, it’s unlikely to happen anytime soon.
The damage is deep and recovery isn’t evident on the horizon. So it doesn’t make financial sense to hang onto a property when you can’t collect rent for it.
Although the chances of a prolonged eviction moratorium are strong, only you can know whether selling the property would be the right move.
Lorenzo Billie