I want to sell, but should I wait????? We’re in an active buyer’s market. Inventory is up, mortgage rates are down and buyers have more choices at better pricing than in many years. There are also more short sales and foreclosures on the market. Generally speaking this is not the market to jump into as a seller, if you can help it, but….
But your circumstances should dictate your decision more than just the market. What are your goals in selling and do the benefits outweigh any loss? This is a great market for the seller who sees the opportunity to upgrade.
Is your home getting too small? Has your family grown and you need more space? This could be your market.
Does your circumstance dictate that it is not a matter of if you need to sell but when? This could be your market.
Are you worried the market may get worse before it gets better? This could be your market.
In a recent article in the Seattle Times, a Seattle agent called the market as reaching bottom when prices fall to 20% off their recent highs (see below). Let’s assume the home you are selling was worth $500,000 at the peak of the market. If the real market value is now only $400,000, in theory you’ve lost $100,000 worth of equity (20%). Now the home you desire was worth $700,000 at the peak. It has also lost 20% (that is $140,000). So if you sell at $400,000 and buy at $560,000 you are $40,000 closer than if you were able to sell and buy at the peak.
A good agent can close the gap even more. In future posts I’ll address the other reasons you might want to list your home now. For a detailed market analysis including a staging consultation contact Dan or Elsie Tabit with Northstone Real Estate.