Rarely is selling a home a purely logical decision. We sell to get something else, and wanting is an emotion that has driven human behavior since the Garden. We sell because we want the cash, or we want to minimize monthly payments. We sell so that we can buy something else, something newer or bigger, in a different area, with a pool or additional bedroom or that three car garage. With borrowing rates on the rise, and the looming forecast of softening home values, homeowners are asking if they should sell or wait. My first piece of advice is to consider the ‘why’ of the motivation to sell. If you have a life change, an opportunity or a need that you’ll be kicking down the road by delaying, sell now. Carpe diem. There's a well known phenomenon that humans usually overestimate risk of the downside and underestimate the upside when it comes to risk/reward evaluations. In other words, we let fear guide us. On the other hand if you’re selling because you want to time the market, you’re bored or just think it might be a good idea to get out now, consider if that eventual move will bring the prize you’re expecting. If you’re selling on a hunch - that could be lucrative, but what are the consequences if you’re timing is wrong? If you have a fixed loan at 3% and you’d need to borrow money at 6%, it may be preferable to hold your current mortgage and stay the course. But then again if rates go substantially higher, prospective buyers may abandon their property searches, and the price your home would fetch today may not be the same tomorrow. In short, just as you aren’t day trading your retirement in the stock market, (most of us anyway) you’d be well advised to look at the long game and set clear goals about your reasons for selling. This is the right time to sell. Your test needs to be based on if it means your lifestyle (mental, physical, emotional) will be positively affected. If you want to run through my ten questions for prospective home sellers, I’ve got you covered. Just shoot me a hello by text or email.
