When is the best time to buy or sell??? ARE we at the bottom?

PRICE is only ONE part of the equation

I get this question asked ALL of the time from my past and future clients. So here I will share with you my 30 years of wisdom on this topic.

I started in real estate in 1979, with the great S & L bailout, mortgage rates in the double digit figures, no MLS, no internet, no company training, lol...what WAS I THINKING??!! To make the matter worse, I was 21 but looked like I was about 15 (ahhh, wish those days were back!). So, I quickly learned that if I was going to 'make it' in this cut throat business, I needed a leg up on all the other experienced agents.

After getting my real estate license, I got my mortgage brokers license because that was in the day that mortgage officers only worked Mon - Fri, 9-5. I wanted to know evenings and weekends how to prequalify a buyer.

Next I went on to take appraisal classes in order to accurately assess a property value. Then, I went to hang out with a Title Company office, so I could fully assess what happens from start to finish in a real estate transaction. I also tagged along with a home inspector, termite inspector and I took as many classes as I could on negotiations, contracts, law.

SO drumroll please ;-) ...... Here is what I've learned in 30 years and will share with you about the BEST time to buy or sell a house. let's start with the best time to buy.

NOW! if you have found the house of your dreams, with a payment you can afford, then buy the house!! I know, I know... what about waiting for the bottom? A better interest rate?? LOL... even REALTORS are not able to tell you when that is!

real estate crystal ball.jpg There is no real estate crystal ball to give you a 100% answer to this question. ! If there WERE then there would be a lot of rich people out there with more money than Bill Gates and Warren Buffet combined and multiplied by a gazillion BILLION, MILLION.

Stop waiting for the best rate, the bottom to drop, if you find a house you love, you can afford, THAT is the best time to buy.

WHEN IS THE BEST TIME TO SELL?

THIS is a little trickier, as it depends on your unique circumstances. Are you in foreclosure? Divorce? Estate sale? Moving up, down, or relocating?

Change exit sign.jpg Depending on the above circumstances, the best time to sell is when you can get the fastest transaction, at the best terms within your circumstances. Most people make the mistake of not taking the first offer, or counter offering a perfectly good offer. After 30 years years I can tell you that this is a huge mistake.

Why you may ask? Because most people who are selling want the most money, right? OF COURSE, we all want the most money, but the problem is that most people think think the highest price will get them the most money. FALSE

Alas, PRICE is only ONE part of the equation.... stay with me here because I'm going to give you the big secret why that isn't true.

The reason is due to holding costs and carrying costs. Holding costs are your mortgage payment (look up how much goes to principal reduction vs interest, ahhh, what is it? Depending on how long you've owned the house, or if you've done a refi, the paydown on your mortage could be as small as $20. a month. Then you also have real estate taxes, homeowners insurance, PMI perhaps if you did not put down 20% and HOA fees if you have that.

Now add all of that up, subtract the payoff and see where you are. If your mortgage payment is around $2k, then that is what you are losing every month you don't sell the house.

This is the reason you need to look at closing costs and figure out if the first offer may not be your BEST offer. Most sellers get into a frame of mind that they will not sell unless they can get xxx amount of dollars. Maybe this example might change your minds. I hope so because there is a lot more to it than the price. Not to mention stress of having to keep the house in top notch showing condition, leaving when a buyer and their agent comes to show the house, etc.

Hope this helps share a little insight on the real estate market for you and when is the best time to sell or buy a property. If you are upside down on your mortgage, then consult with an Accredited Consultant in Real Estate. You have options now, like never before to buy or sell a house and have someone who will give you several options based on your situation as to the best way to sell or buy a house.

Get in touch with an ACRE now to give you the best options on what to do when you are faced with this highly financial and emotional decision in your life.