Are You Crazy Not to Sell Right Now?
It literally is one of the most incredible seller's markets in the entire country right now. With real estate prices on the rise and multiple offers on the table in many deals, are homeowners crazy not to sell right now?
The answer is yes… And no. Remember, if you're selling, it probably means that you have to buy as well and because you have to sell to buy, buying in a seller's market can be tough.
If this is a good time to cash in on your real estate investment, especially if you have a rental that you want to sell, now would be a great time. Work through the numbers and talk with the real estate agent to confirm that selling is the right thing.
If it's not a good idea, either selling a rental or investment property or achieving a different goal, it may not be the best time to sell. If you're planning on selling only to buy in the same market, remember that you're going to have just as hard of a time as the buyers looking to for your home.
However, it still comes back to what you really want and need with your financial goals and dreams. Even if it's a fantastic seller's market and you can quadruple what you paid for the home, it's still about what you need to do with your specific property and real estate dream. It's impossible to know that whether selling now or waiting is the best move. You can talk to real estate agents till you're blue in the face, real estate professionals, and those that predict the outcome and economy, but it really comes down to what you really need. Not acting because of indecision or fear is not the answer either.
Of course, you're always going to find people that wish they had sold then or waited until they've sold now because it's all about what they could've lost or gained. The "what if's" can really recap it on your emotions and the challenge. But everyone selling and buying is a very individual thing.
So how do you know if now is the right time to sell?
#1. Ignore the market.
I know that kind of sounds counterintuitive but if you ignore what the media has hyped up and instead focus on facts and your goals, you can make a more informed decision. Don't let the media and the current market dictate necessarily what you need out of your home or if it's the right time to sell. You can go over your listing options with two or three different agents selecting professionals that have experience with multiple offer markets. Is this really what you want to go for? That may be a matter of opinion and it's best to get a few different opinions before making the decision.
The highest bidder is not always the best offer. The fantasy of getting 20% over the asking price is great, but if the terms don't work for you, there's no point to offer more.
#2. What happens after the sale?
Again, if you need to buy another house, you may be in the same boat that a lot of buyers are in right now. Will you be cashing out? Low interest rates can put cash in the bank making it a financially attractive prospect, especially if you have an investment property or rental that you're ready to let go of.
However, if you are going back into the real estate market, you may discover that much or all of what you've gained by selling can simply go into the next real estate purchase and you really haven't gained all that much. If you end up with less than you had and you're not happy, it might be an expensive real estate lesson.
#3. What happens if you don't do anything?
Which decision is easier to live with? Will you regret not taking the profit out of your home now? Will you be improving your financial well-being? Will you look back at this and think that you are crazy not to sell or smarter to hold onto the home? All the "what if's" can definitely wreak havoc on your brain but by talking through the results and the options with qualified and experienced real estate agents as well as your financial advisors, you can help make a better-informed decision.