Timing The Sale
The Timing Of Real Estate Max Sale
This is The Critical Piece Of Information for you to research and decide upon as it will determine many factors of the sale along with what steps can be taken and how soon those actions should be taken. This will ultimately be the sellers decision but use all available resources (sources from this site, from the internet and * worthwhile professional advice.
This information so important it has a special page: www.maxsalerealestate.com/timing
Timing cannot be “exact” and many people have been hurt by following “historic trends” that did not accurately predict the market turning points because they were based on erroneous or incompatible data. So that is an obvious warning to all, but more important than that potential failure, is to not attempt to determine the apex of the market and time the sale of assets at the point most beneficial for their sale and maximization of sale price. Not attempting to do that is short sighted, or lazy, fear based, negligent behavior.
For example… If you determine the market will likely not top out for another year, then you probably have time to complete a light to moderate remodel of the property but you would need to confirm this with local permitting and building professionals in your area. You would need to compare the cost of remodel to the estimated increase in value.
Factors that determine timing of sale…
Below are some of the factors that determine the timing of the sale, that is, when the property should be placed on the market to sell to avoid selling after the top of the market.
• Home Affordability
• Months Of Home Inventory
• Days On Market
• Economic Trends
• Work Required at Property
• Population Trends
• Available Financing
When selling, it is almost ALWAYS better to attempt the sale early, versus, after the market has peaked because prices historically drop much very fast at the beginning of decline.
Top 10 Reasons You Know It May Be Time To Sell Your Property
10. Because the same people who lost property to foreclosure in 2007 to 2010 are buying again.
9. Your financial advisor says, ‘now is the time to invest in home builder stock’.
8. NINJA loans are back!
7. The general public finally figures out the difference between ‘debt’ and ‘deficit’.
6. Detroit has turned around.
5. Because your realtor just advised you to buy more investment properties.
4. You want to actually retire… not be a property manager for the rest of your life.
3. You think the house may pop because it is so full of equity.
2. Your barber (mail man, gardener, cousin, etc) has suddenly become a real estate investor!
1. You start checking your family tree because you think you may be related to Warren Buffett.
“Black Swan” or “Unpredictable Markets”…
Many real estate industry groups and financial advisors say the housing implosion was a “Black Swan” event that nobody saw coming so you cannot predict the housing market or time the sale of real estate assets. Many treat housing like financial advisors talk about the stock market as a “long term hold” and how you should always be holding and buying during the downturn.
The FACTS about this are different though… The FACT is that wise investors and “owner occupied” home owners sold their appreciated assets and 1031 exchanged them into areas that did not go down dramatically in price and “owner occupied” sellers extracted their two year, tax free 250k/500k sales exemption. The “owner occupied” sellers rented a place until the market bottomed out and bought again and now enjoying appreciation and “investors” swapped properties back to California for big gains.
We know people did this because these people were our clients…!!! In 2006 we wrote a report that predicted a minimum of 25% decrease in housing values, shared this with our clients along with strategies for maximizing gains by liability protection, tax strategies, protected investments and timed repurchase plans.
Timing is critical. You must start with evaluating your circumstances and if you need help determining when is the best time to sell please request a Free Evaluation.
In surfing, it is almost impossible to catch a wave that has already crested. In real estate, selling after the top of the market is not as difficult as catching a crested wave, but, almost. Selling after the crest of the market is much more difficult because there are fewer buyers with less buyer emotion so less seller strength to counter offer at higher prices, less bargaining power for repair request and seller credits and every day, property value is going down.
So selling after the top of the market should always be avoided… And CAN BE AVOIDED by proper planning… So get a Free Evaluation right now.