An argument broke out at a business network meeting I attended earlier this month. The topic of dispute was whether it was better to put your house up for sale now or wait until prices improve.
As you might guess, the real estate agents are all for selling now. They say inventory is low, so you don’t have as much competition now, and in some areas, multiple offers are coming in. But some home owners are saying that since home prices have turned around, if they hold out a little longer, they believe they’ll get more money. Both arguments have merit, so what should you do?
The answer is easy, as I pointed out.
If you are selling to move down into a less expensive home, you come out financially ahead by waiting until prices increase. This is because you will net more money on the house with the higher price tag, which will go farther on buying the cheaper house.
If you are selling to move up into a more expensive home, you come out financially ahead by selling now. This is because that more expensive house will be cheaper today than next month. Even though you’ll net less on your current house, getting the more expensive property for less puts you financially ahead.
Unfortunately, the clear mathematics stopped the party banter, because the controversy ended. Maybe I should keep my mouth shut rather than be a such a party pooper next time.
Um, no, that will never happen. LOL
3 thoughts on “Sell Now or Wait for a Higher Price?”
This is so true Carolyn, great advice!
I appreciate your confirmation, Alfredo, as a respected member of the mortgage community and owner of Mortgage Utopia.
I always look forward to reading your blogs. So many writings out there just tell what people (worse yet, lenders) want to hear but you take it to a core level in such a way that makes sense to everybody. I find them absolutely valuable as I’m sure your readers do.
Please keep up the good blog work and those books coming, certainly a valuable resource for everyone!