When is The Best Time to Sell Your Home?
Hindsight is Not 20/20
I know what you’re thinking – I should have sold my home last year when the market for residential real estate in Massachusetts was on fire. A word to the wise – trying to time the market (i.e., when to buy or sell an asset) is a fool’s game. Even the legendary investor Warren Buffet would admit that he doesn’t have the faintest idea of how an asset will perform on a given day, week, month, or year. Besides, if you are not ready to sell, then the notion of “should have” or “could have” is absurd.
Folks, selling your home is probably the largest and most important investment decision an individual/family will ever make in their lifetime. So, take your time and carefully think it through before making a final decision. Also, don’t be a hero – seek professional advice. Step one is to interview several notable real estate agents in your area and solicit their advice on how best to proceed. Step two is you need to answer three basic questions.
1. Should You Stay or Should You Go?
Many homeowners have lived in their home/community for 10/15/20+ years. So, any decision that contemplates leaving all those memories behind is a difficult one at best. That’s why most people put off deciding until the last possible moment. The key here is to make an informed decision based on the facts so you can determine if it makes sense financially for you to “stay put” or to sell your home. Talk to a financial advisor or better yet – do it yourself. No one knows your financial position better than you.
2. Where to Relocate?
If you decide it’s time to sell, the next question is where do you go? Remember the old adage – don’t quit your job until you have a new one. Well, the same rule applies for housing. Find a new home before you sell your old one. Start by making a list of features that you want your new home/community to have. If you’re thinking about moving out-of-state, then ask one of the local real estate agents you interviewed in step one for advice or an agent referral. Compass real estate, for example, has a nationwide network of agents you can resource, and it’s doesn’t cost you a penny.
3. Should You Buy or Rent?
Now that you decided where you want to live, the next question is do you buy or rent? The answer, of course, is situation specific. Most of us understand the investment benefits of homeownership – the potential to build long-term equity (i.e., savings). Renting, however, may be a more suitable option for you if affordability is an issue, or you just want to evaluate (test drive) living in a town/neighborhood before making a long-term financial commitment. Regardless of which option you choose, take your time, and make a decision that suits your needs. God-speed!
