THIS MAY NOT BE THE TIME TO SELL

By
Real Estate Agent with CENTURY 21 American Homes

There are some buyers who want to sell.  They want to move on for whatever reason.  There is an area they might like better or a different school district or they might want to upgrade to a new home.  But if they sell now they might be leaving money on the table.  The market is down 14% in our area in the last year.  If the market recovers that in the next year like some advisors and economonists predict, that's $21,000 left on the table for a $150,000 house.  That's money that can be turned to equity and used for a down-payment in a year.  I doubt most of us could save up that kind of money any other way.

There is a young couple that was desperate to sell in the spring.  She lost her job and they had too many bills.  They really can't afford to sell given the current market.  With home prices down they are upside-down on their mortgage and they don't have money to bring to closing.  At first, they were behind on their bills and possibly considering a short-sale.  Now they have gotten caught up, sold some stuff and the financial pressure is off. 

But there is a different area they want to live in and they still want to sell.  In fact if they could afford it they'd sell at a loss for the opportuniy to move to another area, even though they're getting ahead financially now.  All they need is a little patience and time and a market that will bounce back.  In their case, it will be worth it in the long run to wait.  There is no pressing need to move now.  So in the mean time their house is listed above market in the hopes they can move on sooner.

Then there are those who are WAY up-side-down.  Folks who bought a house for $500-thousand and now it's worth $300-thousand.  They afford they payments, have a good job, like the area and have no need to sell.  But they just can't stomach the fact that they are upside-down on their home.  They were going to sell in five years and make a profit, now they may have to wait ten years to break even.  So they just bail on their mortgage and walk out of their house for no other reason than their pride.

The first home owners are impatient and maybe a little immature but they're doing the right thing and waiting.  But the second are selfish, walking out on their responsibilities, leaving the banks and even tax-payers holding the bag.  They should just deal with it, be patient, and preserve their credit.

I would love to sell every house presented to me, but I feel I have a responsibilty to encourage sellers to do the sensible thing if they are able.  Sometimes it's just best to wait.

Comments (0)