Should you sell in a seller's market?
We’re in one of the strongest seller’s markets in recent history and you’re thinking about selling your home because it’s appreciated in value quite a bit. Does it make sense? For some people it does and for others it doesn’t, let’s think it through…
Why do you want to sell?
My house is worth a lot and I’d like to cash in on that.
Your house is suddenly worth a lot of money, that’s great and all, but we do suggest that people don’t look at their primary residence as an investment. You’ll always need a place to live and if you sell in a seller’s market you’ll have to buy in a seller’s market. If you really want access to your equity think about what you’d use that money for. In many cases refinancing or utilizing a home equity loan is actually a better decision.
We’ve been wanting to upgrade our home or change towns and we want to sell while the value is high.
Well you can’t argue with that… So what now? You’re going to sell while values are high, but unfortunately that means you’ll have to buy high too. Can you avoid this?
Sometimes you can! Here are a few ways to sell high and avoid buying high so that you can save some of those profits:
Move to a lower cost of living area.
Planning to move out of state or to a different town? If the area has a lower cost of living than where you live currently then the decision is to sell is an easy one.
Downsize your home.
If you’re planning to downsize, that also makes the decision pretty easy. In this situation it’s likely that you’ll be able to purchase a new home and still save a good amount of the profits from your sale.
Find temporary housing.
If you’re looking to stay in the same area then you’ll need to wait for the market to cool down a bit. It’s hard to say when that will happen so now it’s you vs the clock. Do you have somewhere you can live in the meantime? Perhaps your family has an in-law apartment or maybe you sign a cheap lease for a year while you wait to see what the market does. Just make sure that your temporary housing costs don’t eat into your profits too much.
Say “heck it” and upgrade!
There’s nothing wrong with wanting to cash out your equity and use it all to upgrade your living situation. In fact, that is a great use of your home’s equity provided you can find a home that’s right for you. Keep in mind though, in a competitive market there’s a good chance you may have to win a bidding war. So take a look at your finances carefully to make sure that you don’t end up being forced to make a lateral move.
It can be a lot to think about so we’re here to help you weigh your options. Buying and selling real estate doesn’t have to be a stressful experience, in fact we work hard to make sure it’s as simple, stress free, and rewarding as possible.