“Should I Sell now?” As Residential Real Estate Consultants, we have been asked this question thousands of times. If you have a major life changing event that would require selling within the next few years, then yes….investigate selling now. Many indications from economist point to continued declines in housing prices in the Tampa Bay market.
If you are not experiencing a life changing event, then there is no stock answer. Having represented thousands of sellers in the marketing and negotiation process, we have learned that these decisions are deeply personal, and we always start by asking: “why do you want to sell, and where will you go?”
Many who ask for advice about selling do not have plans for where they would go next, and they offer vague responses about possibly upsizing, downsizing, renting, or moving to another area.
After asking the “question behind the question”, we often conclude that the motivating factor is fear. While we are all subject to the barrage of negative media coverage about real estate, and while we all know about a drop in the perceived equity in one’s home, we confidently assert that fear is the last reason someone should sell. Consider the following before you decide to sell:
1. What was your plan when you purchased the home? Was this your dream home where you planned to put down roots? Did you plan be there for 5-7 years? If it has only been 3 years, then why are you selling?
2. Have you had a major life changing event (marriage, divorce, birth of a child, unexpected death in the family, job change or corporate relocation)?
3. Do you need additional space for a home-based business or other reason?
4. Do you require the equity from your home for something else?
5. Have you become a “market watcher?” who frets about your home’s value today compared to the peak of the market?
6. Have you adopted a flipping, day-trader, or investor mentality as opposed to a more long-term outlook about the place that your family calls home?
7. Do you realize that the transaction costs of selling and buying often negates the value of “market timing’?
8. Do you know that timing the market correctly is almost impossible? For a traditional homeowner, who should be taking a long-term approach, timing is irrelevant.
9. Do you remember that real estate is a great financial investment? The average return on a five percent down payment over 10 years is usually three to five times greater than stock market returns.
10. Do you seriously want or need to sell; or are you just testing the market? Since just 1 out of 10 homes is selling per month, now is not the time for a casual seller to test the market; additional overpriced inventory will not benefit anyone.
If you have a strong desire to sell, please contact Team Bohannon for professional assistance. We will ask “the question behind the question”, and offer advice as well as documented results.
- by dale bohanon
