Several months back the declining prices, increasing number of foreclosures and other serious, true and depressing real estate related stories, made the news everywhere, every day.  Now that things have calmed down a bit and the news has focused on other pressing issues, and my family has stop holding secret meetings behind my back, plotting to an intervention to get me into something more stable and lucrative, like busing tables or delivering phone books, I've been struck by how quickly we forget what those months taught us. As an agent who makes their living on commission alone, it's been great to get things moving again and put deals together that stick, but I'm concerned about the recent slew of people I've talked to who want to sell their homes and move on, but scoff at the prices that the real estate agents are quoting them. Including me! 

 

Just so you know: When real estate agents come up with a list price, we compare other similar properties in the area which have sold and closed in the last six months. More than six months, does not give an accurate read of the current market. And comparing the property to homes on the market which have not yet sold is pointless except to see what your competition is going to be. A homes value cannot be truly determined until a willing buyer and a willing seller have come to an agreement on a price. That  price is only known after the property has been fully negotiated and the money and property has changed hands.

 

It seems that as soon as the market started to "recover" a bit, our mindset goes straight back to the good old days of 10+% yearly increase in property values. In those times gone by, the simple cure for a home price you don't quite like -, just give it a year!  Sellers who want to "give it until the market turns around" to put their homes on the market have every right to do so, of course, by all means! I'll be here next year! If you don't have to sell and  you're current home is comfortable, in a decent location and it's not putting you out financially, take the gamble.

 

But, what if you need to relocate, down-size either cost-wise or size-wise, or up-size due to a growing family? No one knows what the market will do in the next year, but we know what it will not do. Real estate in Whatcom County, it will not grow at a rate higher than 1-2%.  There are some very likely nots as well. Interest rates will very likely not be lower than they are now (a buyer client of mine just locked in at 4.85%) and the $8,000 tax credit to first time home buyers will very likely not be available next Spring.  These are just a few of the obvious factors that a seller should consider, when they consider holding off for better days. What if the property your thinking of selling is vacant? If we're lucky enough to have a full 2% increase in prices in the next six months (that would be so great!) a 2% increase on a $300,000 is a decent $6,000. But how much does that empty property set you back every month in mortgage payments, insurance, taxes and upkeep?  Is that $6,000 going to cover those expenses?

 

We real estate agents understand that your home is unique, you've put  a lot of money and effort into it and that you have a strong emotional attachment to it. We understand you don't want to give it away. (If you do want to give it away, please call me immediately)  But, your home is also a huge investment which if handled correctly now will continue to serve you in the future.