There’s no doubt about it – real estate is a great investment. There is 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 peak market to come back.
In Tulsa, Oklahoma, people tend to hold onto their properties for too long because they hope for a significant increase in real estate prices, often doubling or tripling in value. However, the real estate bubble of 2004-2005 is unlikely to occur again in the near future. Despite monitoring the market closely, some property owners are not seeing the substantial price hike they anticipated. While there may be a few years of moderate growth, prices tend to correct themselves and return to their original levels. Property owners may have a specific investment plan in mind, but when considering the annual taxes and original investment, they may find that they are putting in more money than they will ever recover through a sale without a peak market.
Reason 2. They inherited it from family
Another factor that contributes to people holding onto their property for an extended period is inheriting it from a beloved family member, such as their parents or grandparents. The sentimental attachment to the property prompts them to keep it indefinitely, even if they have no intention of living in, renting out, or developing a vacant piece of land. The property may not even be in the same state as the inheritor. Despite struggling with the annual taxes or homeowner’s association fees, they remain steadfast in their desire to hold onto the property for as long as possible.
Reason 3. They plan to build
Another practical rationale for people holding onto their property for too long is the intention to build on it eventually. Despite conducting extensive research on the neighborhood and finding it to be an ideal location for their family, they may lack the necessary funds to construct a home. Alternatively, they may struggle to settle on the perfect floor plan for their dream house. Despite paying taxes and possibly even homeowner’s association fees, they hold onto the property with the hope that one day they will finally build their dream home.
Reason 4. They want too much money
One of the most prevalent reasons why people hold onto their property for an extended period in Tulsa, Oklahoma is due to their high price expectations. They may have an unrealistic notion of what their property is worth and are unwilling to sell for less than their ideal figure. Homeowners who list their house for an exorbitant amount above the market value may not genuinely want to sell and may be offended by any offers below their unrealistic price tag.
Reason 5. They have fond memories
Another emotional rationale for people holding onto their property for too long is their attachment to fond memories associated with the place. It can be challenging to let go of such sentimental value. For instance, the property may have belonged to their grandmother, and they have nostalgic memories of baking pumpkin pies with her during Thanksgiving in the kitchen, or learning to make pistachio thumbprint cookies in the dining nook. Alternatively, it may have been their first home as a married couple, and they have joyful memories of snuggling in the den while watching movies. The property could also be where their children grew up, and they made notches on the door frame to record their growth. These emotions are incredibly intense, making it understandable why people hold onto their property for too long in Tulsa, Oklahoma.