Should I Stay or Should I
Go?
Surprise,
Surprise, the market is on the rise!
As inventory levels have been depleted, home prices have started to
climb at what many would call an alarming rate. With increases as high as 14% in some areas, sellers are astounded
by the offers they are getting, often well above list price and in many cases
with cash. This has raised again
the #1 question homeowners have in a sellers market… “Should I stay or should I
go?”
While
prices are in fact up, and “cashing out” when the market is hot is easy to
justify, all owners must consider their next anticipated step prior to making
any decision to list and sell. A
healthy return on investment makes anyone smile, but if you are simply
transferring that return into another property priced in accordance with seller
market conditions, you could quickly put yourself in a worse situation then
where you started. By sure to plan
your finances long term, don’t only focus on the return you’ll see on the sale
of your current home, but be sure to also forecast future returns on your
next. If selling to purchase in
the same area, we generally refer to this as a lateral move – it can be
attractive, but if the dollars don’t add up, don’t make the move.
If
you’ve been holding out for the rebound however, there has not been a better
time to place your home on the market.
With lower then anticipated inventory levels, and a shortage of true
move in ready homes – buyers are anxious to act and have their checkbooks
ready. Shall you do decide now is
the time, be sure your agent properly analyzes the current market you are
in. Closed sales are extremely
important as they always have been, but be sure to look at appreciation in the
past six months, with prices rising, strategy changes – make sure your agent
has a strong understanding of what’s happening in your area and can properly
price your home for true top dollar.
As
many homeowners in this market experience multiple offers it is prudent to
prepare yourself for this ahead of time.
There are multiple factors to consider while reviewing offers. Mortgage type, down payment placed,
percentage of loan amount vs. purchase price and many more. A higher price with a lower
chance of loan acceptance looks nice on paper, but the loss of a buyer that can
close can and will quickly evaporate any additional funds you may achieve by
going with a higher priced, low chance of closing offer. By sure you and/or your agent know the
flags to look for as offers come in.
We
are definitely in a sellers market, and prices are rising like a high
tide. This can cause anxiety to
sell, and if you are ready now is definitely the time. Just be sure that you understand all
factors in the current market to assure a successful and profitable sale.
