Should I Stay or Should I Go?

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home

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.

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