When conjuring the best time to sell in uncertain times, you hold the cards.
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The personal stories of one Realtor’s battles and triumphs in the highly-competitive Bay Area Real Estate Market, seeking to illuminate and humanize the very real ups-and-downs of homeownership.
We’re struggling with whether to sell now or later . . . ” is a repeating refrain Sarah and I are hearing at many of our listing appointments with potential Sellers.
Followed by “What do you see happening next Spring?” (I wish I knew.)
Because the economy is only ever understood in a rearview mirror, the correct answers to their questions are: “I don’t know.” In fact, nobody knows and anyone who tells you differently should be immediately suspect. Sarah and I can only speak to the current marketplace which has been robust for some, while leaving others short-handed and less than pleased.
Which isn’t to say that we don’t have opinions based on our past experience, or concerns pertaining to the recent stock market volatility, the tariff trade wars, inflation, unemployment, and mounting chaos in D.C., not to mention disturbing world events on multiple fronts. We’d hardly be human if we could turn a blind eye, but the simple truth is that predicting or timing the market is a fool’s errand (and we’re no fools).
You hold the cards
In short, the best time to buy or sell property is when it makes the most sense for you.
While Sellers often have the advantage of holding a property until the market improves, Buyers are typically responding to life events that are taking place in their immediate futures: the birth of a child, a job transfer, an aging parent that is moving in, college kids that are moving out, and so on, and so forth . . . Consequently, Buyers can’t necessarily wait until the market favors them; they often need a place in the here and NOW!
However, if you’re a Buyer that isn’t quite sure where you’ll ultimately settle, or what changes lie ahead. I encourage you to rent until you figure it out. Regrettably, Agents don’t control, nor can we foresee, the marketplace (although that would make our lives infinitely easier) so when we receive calls from potential Sellers who bought within the last few years, and are now hoping that we can pull off a miracle (we can’t), these conversations are much tougher to navigate.
They usually go something like this: “Unfortunately, you bought at the height of the marketplace when interest rates were 3%, and everything was selling in multiple offers. Given the high cost to sell and the correction in property values to pre-Covid rates, it’s very unlikely that we can make you whole.” (Please don’t shoot the messenger.)
Here’s the thing, Real Estate was never meant to be a short-term investment, even here in California where supply and demand often lands in the Sellers’ favor. It’s simply too expensive a transaction. Moreover, condos and townhomes feel the squeeze first, and their values now sit at 2017 sale prices. In essence, if you bought your unit after 2017, you’ve probably lost a fair amount of value. If you own a home, you’re looking at 2020 values. Either way, real estate is an asset that is meant to grow over time (“time” being the operative word) and like all investments, it’s prone to market pressures.
With that understanding, our team will do everything in our power to bring you the best result (“best” being a subjective term). it’s important to note that ultimately it isn’t up to your Realtor® – the market will decide the value of any given property.
Finally, (here’s the toughest part to explain) the market doesn’t care what you want, what you need, or what you must have; the market is the market. Sell, don’t sell, that’s up to you, but please don’t expect us to pull a rabbit out of a hat. (We’re good, but we’re not magicians.)
How can we help you?
Julie Gardner & Sarah Abel | Compass Realty
Not just Realtors, but consultants in all things house and home, we’re here to educate, explore, examine and refer . . . In short, you may count on us to take care of your home as if it were our own and anyone who knows us, knows we take pretty darn good care of our homes.
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