2015 Seller Considerations-Should You Sell Now or Wait?
It’s a conundrum. If you sell now, you could miss out on appreciation. But if you wait, the window of opportunity could close. What do you do if you’re selling your home? Should you sell your home now or wait until later? It’s so tempting to get caught up in all the media hype that is accompanying the real estate turn around. After all, who wants to miss out on home appreciation? On the other hand, the well-known expression first espoused by John Gernica “Pigs get fat, hogs get slaughtered”, may very well apply to the present home selling opportunity.
When there are compelling arguments that can be made for opposing viewpoints, it’s always good to defer to a higher authority. Excluding divinity, there is no higher source for investment advice than from Warren Buffett, “The Oracle of Omaha”. Buffett’s most fundamental principal should be repeated by home sellers. “The time to sell is when everyone else is buying.” This is because when everyone is buying, it becomes a simple matter of supply and demand. When more people buy, there are fewer homes available for sale and buyers pay more. Also, as the supply of inventory becomes scarce, buyers are willing to pay more.
How can a homeowner know if this is the perfect time to sell? It’s quite simple. When the monthly supply of homes available for sale is less than 6 months, it’s a seller’s market. The lower the inventory, the more ideal it is to sell. The problem with waiting is that no one knows for sure what the future holds. Being greedy can cost a seller big time. Consider homeowners who chose to wait to sell so they could make more money, subsequently suffered major losses.
Remember, real estate market is cyclical in nature. Strong selling markets always give way to downturns that affect the ability to sell for optimum prices. So, take advantage of selling while people are buying.