I am very confused, now, about when I should sell my house. I thought I would go ahead and put mine on the market this month because I think I can finally get close to the price I want. However, I have just discovered that the prices have gone up on the homes in the neighborhood I want to move to. So, do I wait, or go ahead and sell mine and rent until prices go down again? Or, am I dreaming? I know you don’t have a crystal ball, but you have good perspective and years of real estate experience in this valley. Please point me in the right direction!
As we always say, “all boats rise at high tide and all boats drop when the tide goes out.” You have figured out this message Realtors often preach when sellers want to wait until their home value goes up.
You have asked a good question — is there a way around this dilemma? You have come up with one possibility, selling now and renting until prices go back down again. However, it is hard to count all of the financial negatives in this solution. You get to move twice, you pay rent with no tax benefits and no chance of equity gain and have to deal with the possibility that rents will go even higher, since they aren’t in your control.
So the question becomes, are there are other reasons besides price? The answer is yes, there are things that need to be considered to help you make the right decision and they are not just the sales price of your current home and purchase price of your next home.
There are several other factors to consider:
• Interest rates are low. They are the lowest they have been since October 2013. They actually dropped seven times in the past nine weeks. Although they are not at the all-time low they were at in November of 2012, they are at excellent rates right now, after dropping steadily this year. Some economists think the rates might stay favorable through the next six months, but most believe they are going up in the not too distant future. So, right now you can purchase a lot more home than you will be able to buy when the rates start climbing again.
• Getting the best price on your home and the best deal on your next home. This takes an experienced and knowledgeable Realtor’s help. Although you pay a commission to sell your home, you will most likely still net more money by using a skilled agent than selling it yourself. And when you use a buyers’ agent to represent you on your purchase, often their skill can save you thousands of dollars.
• Terms. Once again a sharp Realtor can help you get terms in your contract that will save you money. This can be accomplished during the offer and counter offer stage, the inspection resolution phase and sometimes the move out clause (If you could stay for seven to 30 days so that you only move once or delayed closing once all contingencies have been met, etc.)
Contact one or more competent Realtors in the valley, and choose one as soon as possible to help you with this important and exciting decision.
Joan Harned is an owner and broker for Keller Williams Mountain Properties and heads up Team Black Bear, her own real estate team. Harned has been selling real estate in Eagle County for 27 years, is a past chairman of the Vail Board of Realtors, past Realtor of the Year, past director on the Great Outdoors Colorado Board and a member of the Luxury and Land Institutes. Contact Harned with your real estate questions at Joan@TeamBlackBear.com, 970-337-7777 or www.SkiAndTeeHomes.com.