The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR ®, CSP, GRI, ePRO ®, REALTOR ®, RE/MAX MarketPlace
The opinions expressed here are my own and don’t necessarily represent those of RE/MAX International.
Should I wait? (for the Seller)
If you’re a regular reader, you have heard (read) my opinion that we are unlikely to see a substantial recovery in the housing market prior to 2020. Seems lately that more and more “experts” are agreeing with this time line. Even so, people are still making decisions everyday to buy or sell their homes.
What seems most important is that buyers and sellers make those decisions wisely. Doing so requires a deeper understanding of the factors that most buyers and sellers should be considering as they struggle with their respective decisions.
Even though it’s definitely a Buyers’ Market, the first group that I focus on is that of the Seller.
FACT: Now is NOT a Great time to sell… Even so, it could be the Best time to Sell!
Reasons to Sell:
- Safety: Do you fear for your safety? If you don’t feel safe in your own home all other reasons to stay or go are pretty heavily diminished.
- Job Change/Relocation: Job transfers or losses are often driving concerns for homeowners to sell. Do you really want to maintain this home from a distance? Are you considering renting the home… are you up to the task and risks of being a landlord? Has a job loss or change made the option of continuing in this current home unrealistic?
- Market Values have dropped significantly: If values in your home’s market area have dropped or are dropping significantly (especially compared to surrounding areas), selling now may be your best option to preserve what remains of your equity or to stop future losses.
- You have equity in your home and are moving to a place where homes are cheaper. In your new market, your money will go a lot further. Count your blessings!
- You have outgrown your existing home and expansion doesn’t make economic sense. Don’t put more money into a home than you will be able to recoup unless your plan is to remain for several more years. If you are looking to upsize… you’re probably better off moving up now while mortgage rates are at historic lows and there are plenty of bargains on the market that will met your needs and desires.
- You’ve found the right house in the right area for you. The schools are great. You love the area and know it would be hard to find another house like the one you have your eye on. In a better market, you would most likely have much more competition for that home. Understand that even in this market the most desirable properties can still experience multiple offers and bidding wars… but much less frequently than in times past.
Reasons to Stay Put:
- You’ve lived in your house less than five years. Chances are you haven’t had enough time to accumulate equity in your home. Indeed, you may have negative equity.
- Your job security is uncertain. If your company or business is in distress, it’s probably better to stay where you are until you are in a more secure situation. Conversely, it might be a time to consider downsizing as a way to cut future expenses. But be aware of the potential for negative equity if you have been in your current home less than five years.
- You don’t have good credit or a decent down payment. Do you have a job and income you can document? Lenders have become much more careful about whom they’re giving their money to. Selling when you have credit problems could lock you out of a purchase of another home, even if your purpose is to decrease expenses.
- You don’t have a driving reason/motivation to sell. If there is no driving need or motivation for selling (see reason to sell above).
Next time we’ll take a look at the decision process for Buyers.
May the market be with you.
