Recently I have been asked a lot if it is really a good time to buy. My response has been that I do believe that any time any market takes a 20-30% price hit that it must be a good time to buy if we believe that all markets go in circles, up and down and around.
But, this led me to wonder, is there really ever a good time to sell. Let's think about this. If we are in a sellers market where prices seem to be increasing daily, sellers may be able to sell their homes for more money 6 months from now. Conversely, if we are in a buyer's market like the one we are in now, sellers may actually lose money by waiting to sell. Could you get more money for your home in the spring because that is when most buyers decide to look? Perhaps. Could you get more money if you wait until closer to winter time because there are less sellers and thus less competition? Perhaps.
I personally believe right now is a great time to sell for many people, but not all people. If you are looking to move up in price range because you want better schools, or a larger home, or more acreage or...this list could go on and on, you should consider selling. Think about it. If you have what you believe is a $100,000 home but could only get $90,000 for it, or 10% less than it's value, but you are buying a $200,000 home for that same 10% less, you are actuall coming out $10,000 ahead. Conversely, if you are looking to move down in value, now may not be the time to sell for the very same reasons.
The bottom line is this: we could argue forever whether it is a good time to sell or not. We could give scenario after scenario arguing both sides and never truly come to a real answer.
Lloyd Reed is the managing broker for ERA Network Real Estate in Grand Rapids, Michigan. 616-456-7500 x 114.
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