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With home prices rising in most parts of the country, most owners are wondering if now would be the time to sell? Even those who are perfectly happy where they are can't help but think of those often hundreds of thousands of dollars in profit that they can reap by selling. It's enough, in many cases, to start a small business, put kids through school, or help with retirement. Of course, stories in the media speaking of a "housing bubble" don't help. Even Alan Greenspan, Chairman of the Federal Reserve, speaks of an exuberance of prices in certain areas. Owners are wondering whether, if they wait, will they miss out on the best market in a century? Will they find it more difficult to sell in the future? And will they then get a lower price? For those who are considering selling "by owner," there is even more thought that now might be the best time to put a house on the market. After all, if agents can sell a property in a few weeks with multiple offers, shouldn't a "by owner" seller be able to do almost as well? In short, is right now the happy hunting time for those who are thinking of selling their home? Won't waiting even a few months mean that the boat will have sailed without them? TIMING IS CRITICAL A friend of mine recently sold her home "by owner." She had it on the market for only three days - that's right, just three days! She was asking $870,000 and she had three offers, one for full price, which she naturally accepted. There's nothing remarkable about this story, so far, since owners are selling their homes right and left. What is remarkable is that just two year ago she put the same house up for sale for $570,000. She tried selling it "by owner" for three months and then listed it for another three months, all to no avail. She couldn't sell it even with price reductions to the $400,000s back then. But, today, she's able to sell it for $300,000 more than her old asking price! All of which is to say that, yes, it is a remarkable market in many areas of the country. And if you're contemplating selling, you probably couldn't pick a better time than right now. TRAP Before putting your home up for sale, however, here are some downsides you should consider: - Where Will You Move To? It could cost you more to move to another home in your locale than to stay in your current one! (Some sellers are moving to lower cost areas, often out-of-state, and pocketing the difference in prices.)
- Will You Make More Money By Staying? Who knows, the market could go up even more!
- Is The Timing Right For You? What the market does is one thing - what you're ready to do can be another. You should consider your kid's schooling, your retirement plans, your employment options, even your proximity to needed health care facilities.
TIPNo one knows the future. And determining whether now is the best time to sell is really a crap shoot. We'll only know for certain six months or a year from now. Then, if the market has turned, we'll look back ruefully and wished we could have sold for that top dollar when we had a chance. On the other hand, if prices are still accelerating, we could be like my friend who's counting the additional money she made, just by waiting. |
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