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The Dilemma: Should I sell now or next year?

The dilemma: Should I sell now or next year? Many sellers are asking themselves this question. As a trusted advisor you have to give good advice. I am constantly asked this question as I sit in front of my prospective clients. To me the answer is very clear. There are many reasons to sell now rather then wait until next year.

Even though the economic recovery is appearing to be improving, the economy remains very fragile. As long it is fragile, that means consumer confidence is still lacking. As long as consumer confidence is weak, prices are vulnerable to new shock waves that can be seen on the news outlets daily.

Add to this the unemployment figures. As long as the job market remains weak the answer is clear. There will be a great deal more economic mess, due to the banking sector remaining reluctant to lend money, home owners struggling to maintain without income.

So there are many questions to ask. Will the Job Market be better next year? Will interest rates remain low? Will consumer confidence be stronger? Will the buyers return to the real estate buying in stronger numbers then this year? Depends how you answer this questions will determine in your mind whether you will decide to sell now or next year.

I just want to pose the question: what if the prices drop another 10-15% next year? Would you sell now or next year?

If you are a consumer who is considering buying or selling a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at EndreBarath@TheMLS.Com or visit one of my websites at http://www.endrebarath.com

Posted by Endre Barath,Jr. on 09/11/2009 02:21 PM

Comments (20)

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20 Comments on The Dilemma: Should I sell now or next year?

SEP

I think when posed as you put it in this post, Endre, the answer is quite clear.

While perspective sellers might not get the price they're hoping for now, no one knows what the future will bring. The price they get now might exceed the price they get next year.

Well done my friend.

No one can predict what will happen tomorrow much less the future. If someone could guarantee you to get more next year, then sure I would...but they can't.

SEP

It's also a question of the future value of money. From a monetary standpoint today's money is worth more than tomorrow's money, therefore sell today.

It would depend on whether or not we get universal health care so that I don't have to pay these outrageous insurance premiums. Then I can afford to sell my house for less money -- LOL.

SEP

Craig, I agree although we do not have chrystal balls all economic indication point to sell now.Thank you for your input

Cindy, I concur No garrantees for higher prices next year.

Silvia you make a great point with the depreciation of the value of money that is clear even if you get a bit more next year you actually loose more by waiting to sell.Thank you for the valuable input

So Jim either way sounds like you agree it will be worth less next year vs this year.Very funny how you put it btw.:))

SEP

ToulaRosebrock,com

Hi Endre:

My answer is always NOW...

No one knows what is in store for us next year.

SEP

Toula,I agree today is sure thing, who knows about next year. Thank you for your input.

SEP

I think that if we can get back to the point where people buy a home to live in, raise a family in, retire in, and perhaps even die in, we won't have to worry about selling now or next year. We'll also have a more stable economy and real estate market.

Russel, great point, I am not sure we will ever get back to this solid stable value based mentality you referr to, due to many socio economic changes that have taken place in the past thirty years. Partly because our value system has changed as well.

SEP

Here, the number of sales and the average price are trending down. That makes it clear that the sooner, the better for a sale. However, that's easier said than done with the high inventory we have with so few buyers.

Janna, you are so right it is easy to list, but to actually sell is another story.

SEP

I get these questions almost every week. Unless a seller is willing to price agressively, if there's no need to sell now, I suggest they wait. Now, of course, there are always other circumstances to consider, but I really don't need more "speculative" sellers.

SEP

Douglas I love your Term "speculative" seller. Reminds me of the last down turn when sellers were holding out and lost 50% of the value of their home and then still sold....

SEP

It seems to me that land always has some inherent value. It's tangible, far more than stocks in a company that may cease to exist.

SEP

Christine thank you for your comments I am sure you meant to post it to my Land Post:)) Have a woderfull week end.

OCT

I wish people would sell because they need to -- birth in the family, children graduating and leaving, etc -- rather than trying to play games with real estate. I think I'm following in my parents footsteps, "stuck in the same house year after year after year."

Jim, I wish we could turn the time back to my parents' times. A home was to raise a family and enjoy the back yard. For many reasons times have changed....hence there are many sellers that still look at a home as an investment that can be sold and bought, not as a place to grow old in. Hence timing is still a factor....

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