Why do some Detroit property owners tend to hold onto a property too long? There is no doubt about it, real estate can be a good investment. There is some money making potential when you own real estate. Let’s dig in a little deeper and discuss why you might hold onto a property too long and what to do about it.
1st reason. Waiting for the market to improve.
One of the reasons why people hold onto a house too long in Detroit, MI is that they are waiting for the prices of the market to double or triple! The real estate bubble of 2004-2007 is not bound to happen again any time soon. Some property owners are watching the market regularly and aren’t seeing the big price increase they were hoping for. They watch it go up 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 but taking into account the annual taxes and the original investment it is starting to become more money invested than they will ever see come back through a sale without the real estate peak market.
2nd reason. They inherited it from close family
Another reason why people hold onto a property too long is that they inherited it from a close relative, maybe 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 parcel of vacant land. It might not even be in the same state! The annual taxes or insurance 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.
3rd reason. They want to build a new home
A more practical reason why people hold a property for too long is that they plan to build on it. Maybe they’ve done research on the neighborhood and it’s a perfect fit for them and their kids 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 property taxes and insurance but they hold on to the property with hopes that one day they will finally build their dream house.
4th reason. They want too much money
A common reason why people hold onto a property too long in Detroit, 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 expectation.
5th reason. They have good memories
Another reason why folks hold onto a property too long is that they might have great memories. Emotions are hard to get past. Maybe their grandmother lived there and they grew up in the kitchen baking sweet potato pies for Thanksgiving with her or learning how to make macaroni and cheese from scratch. Maybe it was their first house as a married couple and have lots of happy memories cuddling in the living room watching movies. Maybe it’s the house their children grew up in and they made notches in the door frame marking their growth. These are all very strong emotions to override and they are understandable reasons why people hold onto a property too long in Detroit, MI.
