Sell Now or Sell Later?
- Dan Stitzel out for a walk with his dog Patrick
Wesley Homes resident, Dan Stitzel, sold his home a year ago and made the move to the Wesley Homes Retirement Community. Even though he sold it for little more than it cost him to build 15 ½ years ago, he’s happy he didn’t hesitate to make the move.
“When exactly the floor plan I was looking for became available at Wesley Homes I didn’t want to pass on it,” he said, “I could have sat on my home another two-three years but I knew the market could be just as bad later, and so far that prophecy is proving correct.”
“From my perspective, it doesn’t make sense to screw up your life because you can’t sell a house for some inflated price,” reflects Stitzel.
“If my grandparents were contemplating selling their current home and moving to a retirement community, I would advise them to sell now rather than waiting for prices to rebound” says Susan Krueger, a local Associate Broker named “Best In Customer Service” Seattle Magazine 2008 & 2009.
When It’s Time to Move
Paul Scobee, an instructor for the Washington State Home Finance Commission, agrees with Krueger not to procrastinate if you know you want to make a move.
“Right now you might be encouraged to wait by the media reporting statistics that show home sales are up 50% from what they were last year,” said Scobee, “and it’s certainly true that we are experiencing 50-year lows in interest rates.”
“But that’s because the Federal Reserve Bank is buying mortgage-backed securities,” he said, “It takes millions of dollars to do that and it’s not a sustainable practice.”
What do Home Sales Statics Indicate?
Scobee suggests you think of the current housing sales statistics more like a temporary anomaly rather than being indicative of a recovering housing market.
“Like the ‘Cash for Clunkers’, the ‘First Time Buyer Program’ combined with federally controlled low interest rates has resulted in a bubble of sales that is more like a fire sale.”
The Problem
“I was just talking with the Regional Vice President of a local bank this week and he agreed that all indicators point to a very slow rebound in home values,” said Krueger.
“Therefore, waiting another six months to a year or even two most likely is not going to see sellers realizing any significant appreciation in their home value,” she said, “and in fact, they may be facing a shrinking pool of buyers after the tax credit expires and the interest rates go up.”
“If you’re a seller, all these foreclosed homes hitting the market are not helping you,” said Scobee, “Your competition is foreclosures and there’s more coming.
The Good News
The First time Buyer Program has been extended. According to both Scobee and Krueger, that is good news for buyers and therefore for sellers. Before the First Time Buyer Program ends, there is still a window of opportunity to attract a large number of buyers if your home is selling for $400,000 or less.
“However, if you don’t sell it in the next couple of months you’re going to be wishing you had,” he said, “Wake up and smell the coffee. Take a month or so to do repairs and then get it on the market. If you wait, it will only be more painful to sell later.”
– ilene little for Wesley Homes
