It may be more challenging to sell your home in NY this year. If you have been planning on upgrading to a new home in a better neighborhood with more space, or even moving out of state, selling your home may present some unexpected quirks.
Be sure you know these potential issues which can hurt your chances of selling or even refinancing your home in NY, and how you can beat them.
Property Taxes
Property taxes must be paid up by closing. New buyers and their lenders or title agents are not going to allow the closing to go through until any property tax bills and IRS tax liens are paid off. Including prorated taxes for the time you’ve lived in the home. In some extreme cases past due taxes can even exceed the value of the home.
Even if you are up to date, tax bills that are higher than for comparable homes for sale will make your listing unattractive, and immediately get you deleted from their short list of homes to view and make an offer on.
Fortunately, many owners are eligible for discounts on their bills, and can get them reduced.
Unpermitted Changes Or Code Violations
If you have made any improvements or changes to your property without getting permits, it could be a big issue. Changes in ownership and inspections may trigger that being found out.
This can include everything from converting apartments and suites to rent out or accommodate extra family members, or home offices and home school rooms, to removing or adding trees in your landscaping, to adjusting doors and windows.
In some cases even not cutting the grass often enough can lead to liens which will prevent the sale of your home.
Any of these issues should be fixed in advance of trying to list for sale.
Remember that if there is any HOA or condo association they have to be approved by lenders too. If they have suffered financially, or have seen reserve amounts drop or delinquent owners through the pandemic, buyers may not be able to finance the purchase of your home.
Declining Markets
NY is one of the few areas of the country which is expected to potentially see a declining real estate market this year.
Once sales volume and prices have peaked and begin to decline, lenders tend not to lend. They don’t want to loan money on properties which may keep losing money.
COVID Rules
NY is known for having some of the harshest COVID rules in the country. No matter what your personal stance and beliefs about the virus, lockdowns and vaccines, half of the country doesn’t want them.
If you’ve traveled to the southern half of the country lately, you could have driven through seven or more states without seeing a single person wearing a mask. They probably weren’t vaccinated either.
Not only has uHaul reported running out of trucks and moving equipment in states like CA, NY and IL as hundreds of thousands flee for more freedom and lower taxes, but few are interested in moving in, or visiting.
That will make it extra hard to find a buyer for your home.
Rising Interest Rates
Goldman Sachs predicts the Fed will unleash at least four rate hikes this year. That’s after mortgage rates already began rising in January.
That means even more home buyers will be locked out of the market, and will no longer qualify for loans. Plus, lenders are now revising mortgage guidelines, to block those that have used forbearance plans or who skipped payments during lockdowns from qualifying from loans.
If you are hoping to sell your place in NY this year, the sooner you can fix these issues and list the better off you will probably be.