Should I sell or should I wait?
Should I sell my home in today’s market or Should I wait and rent it out until the market goes back up?
These are two questions I hear a lot these days. In order for me to answer these questions, I must ask a couple questions myself. First off, if you sell your home, what’s your next move? If you are planning on buying another home or property you’re going to benefit from this market on the buying end. In some cases, you may be buying in a different market that has been hit harder. To address the second question, in regards to renting out your property and waiting for the market to go back up; I would ask what’s your time frame? If you are only planning to rent it out for a year or two, then you probably won’t see the market appreciate much.
Lastly where and what kind of property are we talking about? There are some properties that simply put, are “special”. These properties usually have something hard to find like waterfront view, great curb appeal, or a huge lot. In other words, supply and demand takes place; if supply is low, then the the market is always high. Finally, stop listening to everyone’s opinion, stop believing the sky is falling because the newspaper chooses to report bad news then shape it to effect you. I had a close friend recently tell me ” Mac, did you know that 1 out of 5 homeowners are losing there home in California.” To which I responded, “then 4 out of 5 people aren’t loosing their homes.”
These are two questions that I have on my mind right now – that’s how I came across your post. We’ve been thinking about moving to gain more outdoor space (my partner is a keen gardener). The current housing market climate means that the value of our property has fallen a little, but then the prices of suitable properties has also decreased. I’m currently inclined toward waiting – probably at least six months. What would you advise?
Hello Mel,
Thanks for checking out my team’s blog. In regards to your question, I would need to ask you some more questions to better get a feel of your situation. Like, Why do want to wait six months? Does your home need work before you put it on the market? What area are you selling in and what area do you intend to buy in? How much equity is in your home now? Please email or reply to these questions; so that I may give you better advice. If you would like to call me direct feel free to do so, 650-245-1005. I look forward to talking to you Mel and have a great week.
Unless you just NEED to sell your home I think the answer would be obvious – No – you should wait until the market is in a more favorable climate to maximize your profits.
I think however that it is a great time to BUY real estate…and if you’re in the position to do so you better do it soon in order to take advantage of the lowest interest rates you’re probably ever going to see again in our lifetime and also because there are some fantastic deals to be had.
Chad,
Thank you for the comment. In our area some of the neighborhoods haven’t really declined in value. Therefore, some can sell their house by free will at a very good price and buy two or more homes in an area that has been hit harder.
There are a bunch of scenarios where selling right now and re-investing in real estate should pay off tremendously for the few smart real estate investors out there.
-Dave
I’m all for waiting if your financial situation is not pressing. My partner and I have an investment property we want to sell but we rather wait and keep paying the mortgage as long as we can afford it because it is tax deductible and will give us a better return.
Hi Rose,
I would agree, it is usually smarter to hold on to your investment property – most of the time, if you can afford it. However, statistics also show when you sell your home or investment property for as much as you can during a buyers market and use that money to “buy up” in price, you will be making a wise investment.
-Dave
I guess the moral of the story is you can’t give blanket advice about things like this, there are too many variables and it really depends on your situation! One thing’s for sure, my wife and I are 100% sure now isn’t the time to buy, we’re holding off for the time being and continuing to rent – even though our landlord has put the rent up again! My guess is its a good time for property owners to rent out at a time like this
Tom, your correct in realizing that every situation is different. If you feel its best to wait right now then continue to rent, but ask yourself this; how long will rates be this low? I thank you for taking interest in our blog and would encourage you to contact us with questions when you do start looking.
Aloha, We currently own a nice home in Kihei, Maui, HI. Last April we refinanced and took out $200,000 and purchased our dream home in Naples Florida on 3 acres. We now owe $475k on our Maui home. The Maui home was built in 1985, 3 bedrooms, 2 bath, huge den with unobstructed views of Lanai and West Maui, a huge deck over the den with unobstructed views of Lanai, West Maui and Haleakala. Large lot totally fenced in. 10 minute walk to beautiful Maui beaches. We also have a 500 square foot 1 bedroom 1 bath seperate ohana with a 30 foot deck and it’s own electric meter and address.
Anyway, my question is ..We want to get off this rock and move into our home in Naples. Should we just sell here and move to FL debt free or rent the Maui house out and wait till the market gets better? How long in your opinion till the market recovers? Will it ever go back to the 2005/6 prices. Our home was appraised at 1.4 million in 2005. When we refinanced in April the appraisal came in at 750k . We know we could rent out the main house for around $2,200.00 a month and we already get $1,200 for the ohana so our mortage would be completely covered. It’s just hard to oversee a house in Maui from Florida.
Hello Kimberly,
First off, Congrats on your new home it sounds wonderful. In regards to your home in Maui, I would say that prices aren’t coming back to those levels of 2005 anytime soon. I also would seek advice from 3 local realtors in the area. Every area varies so much, your local realtors should have a pulse on the market. In regards to renting your home, just make sure you have an excellent property management company and find good tenants, because you are going to be so far away. I’ve spoken to landlords before who insist that it is important to be at the most, an hour away from their properties. Renting can be great, but bad tenants can make it miserable. Good luck and please feel free to send us more questions.
These are two questions I hear a lot these days. In order for me to answer these questions, I must ask a couple questions myself. First off, if you sell your home, what’s your next move? If you are planning on buying another home or property you’re going to benefit from this market on the buying end. In some cases, you may be buying in a different market that has been hit harder. To address the second question, in regards to renting out your property and waiting for the market to go back up; I would ask what’s your time frame? If you are only planning to rent it out for a year or two, then you probably won’t see the market appreciate much.