Should You Sell or Wait for the Market to recover?: That is the Question!
To Sell or Not To Sell: That is the Question!
The real estate market is slowly, and the operative word here is SLOWLY, recovering from the worst economic recession in recent memory. Investors are skeptical and naturally cautious, as are home owners planning on selling. Quite frankly, they all have a very good reason for being skeptical and cautious and continued caution should be followed.
So what does one do in the current recovery period regarding real estate sales and/or investment? That question has been posed to us on quite a few occasions so let’s break it down and try to answer as best we can.
One scenario that plays out often is really the exception to the rest of this article. In some instances, home owners find themselves having to sell immediately, and in those cases it really is a matter of selling at all costs. What one once thought their property was worth is really irrelevant when faced with a situation of having to sell.
However, in cases where a sale is not dictated by a time factor, then the first piece of advice we can give you is to be as patient as possible. Property prices will increase but it will take time, and current economic indicators are pointing at two to three years before there is relative normalcy on the real estate market. If you can put your property on the market and then wait, eventually the right buyer willing to pay close to your asking price will come along, but that wait might entail a year or more.
The same piece of advice can be given to investors. It is the opinion of practically every expert in the field that long-term investment in real estate is a wise move, but the key word is long-term. The old days of buying and selling within months and realizing a sizeable profit are gone and may not be seen again in this generation. If you are planning on buying for an investment then plan on holding onto that property for years. We really cannot over-emphasize that point enough, and any real estate agent that tells you differently is not an agent for you.
The economic slump will not go on forever even though it may seem so at this time. It is hard to hear from an appraiser that your property is worth 10%, 20%, even 30% less than you had hoped, but if you can hold onto it the appraisal will rise eventually. And please, the flip-side of that statement is true as well. You have lived in a home for years, it has emotional value to you, but emotional value does not equate to market value. During these times what you think your place is worth is oftentimes very unrealistic. You may have to lower the price to sell and if you aren’t willing to do that then take it off the market.
While you are waiting for the right time to put your home on the market, do some home improvements so that the home reaches maximum value when you do sell. Improve the curb appeal by doing basic maintenance and beautification to the outside. And consider this: on home improvements like kitchen remodels, the cost of construction is less during a down economic period, so in the long run you are saving money on repairs AND gaining money on the eventual sales price.
When it comes time to finally sell, our advice is to go with a real estate agent who will give you an honest opinion, not necessarily the one who gives you the highest bid. Do not be swayed by the “promise” of a few extra thousand; go with honesty and integrity, an agent willing to tell the truth at the risk of not being the highest bidder.
And finally, while you wait for the market to improve, enjoy your current home. Don’t get wrapped up in the worry of “what ifs” and “when is it going to happen?” Kick back and enjoy whatever attributes your current home had that sold you on it in the first place. The time will come eventually to say goodbye to the old place; in the meantime, enjoy the experience.
If we can be of any assistance while you study the market and consider your options, please give the pros at SportsRelocation.com a call and we’ll be happy to discuss this with you.
SportsRelocation.com® assists players/coaches of the NBA, WNBA, NFL, MLB, NHL, and Entertainers relocate nationwide by servicing your Real Estate & Relocation needs.
The Sports Relocation team is waiting to hear from you. Our primary goal is to assist you with all of the challenges related to transitioning into your new home. Visit us at http://www.SportsRelocation.com or call us at 800.783.1421