{"id":70071,"date":"2018-01-10T12:20:49","date_gmt":"2018-01-10T17:20:49","guid":{"rendered":"https:\/\/www.bhgre.com\/bhgrelife\/?p=70071"},"modified":"2018-01-10T12:22:09","modified_gmt":"2018-01-10T17:22:09","slug":"now-time-sell-house-really","status":"publish","type":"post","link":"https:\/\/www.bhgre.com\/bhgrelife\/now-time-sell-house-really\/","title":{"rendered":"Why Now Is The Time To Sell That House \u2013 Really"},"content":{"rendered":"
\u201cWe would love to sell our home, but there is nothing to buy in this market.\u201d<\/p>\n
As a Broker in the greater Portland, Oregon area, I hear this all the time from empty nesters. Real Estate\u00a0values are increasing at a historic pace, yet people are afraid to sell their homes for fear they will never\u00a0find another one. The stories of bidding wars and houses selling within a day have created a fear of\u00a0being a buyer. \nYes, it\u2019s a sellers\u2019 market, but things aren\u2019t that bad if you are willing to employ the right strategy.<\/p>\n
Here\u2019s what I tell my clients. Throw away the old method of listing your home while simultaneously\u00a0finding your next one. You are at a disadvantage when buying a house is contingent on selling. It puts you in a weakened position for negotiation and makes you a less desirable buyer when you\u2019re trying to\u00a0win the \u2018bidding war\u2019. And the limited number of listings available at any given moment puts even more\u00a0pressure on you. It\u2019s no wonder you\u2019re procrastinating.\u00a0Here\u2019s the way to breathe easy, have some fun, and get the best deal on both the sale of your current \nproperty and the purchase of your new dream home. Follow a three\u2010step process; Sell > Rent > Buy.<\/p>\n
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SELL<\/strong> \nTake the time to get your home in prime condition to get maximum value. Don\u2019t even look at\u00a0listings. Focus only on your current property. Enjoy the time and negotiating power you have \nfor completing a sale.<\/li>\n
RENT<\/strong> \nAfter you have a Sale Agreement, find yourself a place to rent. A 12\u2010month lease is typically\u00a0required. You may pick a place near where you hope to find your next home to see how the \narea feels to you.\u00a0Or maybe you are thinking about moving into a townhome or condo for the first time. It would\u00a0be smart to try that style of living before buying one. I know several empty nesters who thought\u00a0this sounded great, and hated it after they bought one. You could even consider renting for a\u00a0fun new experience like a downtown condo, a farm, or a floating home.<\/li>\n
BUY<\/strong> \nOnce you have secured your temporary residence, it\u2019s time to start researching the market for\u00a0your new place. Build a list of criteria for the home of your dreams. You now have the luxury of taking several months to get the best possible property for the next stage of your life. Instead of\u00a0the limited number that might be on the market when you sold your old home, you\u2019ll have many listings to consider.\u00a0Think of it this way; when you sell, and buy at the same time, there might be 30 homes available that\u00a0match your preferences. The average listing is on the market for 30\u201045 days. If you can wait, there\u00a0could be roughly the same number of new properties to consider every month that goes by. Instead of\u00a0a one\u2010time choice of 30 houses, you could have 300 to choose from while comfortably renting. I like to\u00a0say you have a tenfold better chance to find your perfect place when you use the Sell > Rent > Buy\u00a0Strategy.<\/li>\n<\/ul>\n
When you find that dream home, you are a strong buyer, having no contingency on sale and flexible\u00a0closing timelines that could be of value to a seller.\u00a0You might\u00a0say, \u201coh, but the hassle of moving twice\u201d\u2026. Or, \u201cwhat if we find our dream home after only a couple of months and we are in a twelve\u2010month lease?\u201d\u00a0To this I say, your home is the focal point of your life and you are making a huge long term decision.Wouldn\u2019t having a better chance of getting just the right place be worth the inconvenience of moving\u00a0twice? And for a bonus, moving twice creates more opportunities to get rid of all the junk you don\u2019t need!<\/p>\n
The concern about breaking a lease early is not relevant in the big picture. Don\u2019t make the mistake of\u00a0thinking you are on the hook for the whole term. Most leases have a one or two\u2010month penalty for\u00a0early termination. A small price to pay for a dream home.\u00a0Another bonus is having time to move. Once you take possession of your new home, you don\u2019t have to\u00a0move in the same day. You have extra time to clean, paint, or even remodel while you still have your\u00a0rental.<\/p>\n
Finally, another source of procrastination is the belief that the hot market will go away before long.\u00a0Everyone remembers the real estate crash of 2008 and many speculate that it may happen again,\u00a0leading to lower home prices and more inventory. So, that\u2019s when they think they will look for a new\u00a0home. Wait a minute, could we be forgetting that the value of your house will go down and be even\u00a0harder to sell if that happens.<\/p>\n
2008 was an aberration brought on by a unique set of circumstances in the mortgage market. A lot was\u00a0learned and it is unlikely that will ever happen that way again. Multiple reports put the long\u2010term home\u00a0value appreciation in the range of 4.5%\u20105.5% annually. The waiting argument doesn\u2019t seem to work!\u00a0Look at these trends provided by the Oregon RMLS as a great example. The average home price in 1992\u00a0was $100,000. By 2016 the average hit nearly $400,000. Similar ratios happened nationwide.<\/p>\n
<\/p>\n
*Source: Oregon MLS\/RMLS.com<\/p>\n
This graph demonstrates how relaxed mortgage rules led to overpricing in 2005\u20102008 which caused a market adjustment from 2009\u20102012. However, the trend line shows how growth was steady at historic rates when you look at the years in total.<\/p>\n
The likelihood of less stress, better financial results, and landing the home of your dreams is truly a possibility! The Sell > Rent > Buy strategy can work for you if you are willing to put in a little more effort and patience.<\/p>\n
Tom Newton grew up and lives in Lake Oswego, Oregon. He\u2019s made real estate part of his \u201cRetirement Career\u201d<\/em><\/p>\n
Tom Newton<\/strong><\/p>\n
BHG Realty Partners<\/em><\/p>\n
Oregon Licensed Real Estate Broker<\/em><\/strong><\/p>\n
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