Is this the right time to sell my home?

Is this the right time for me to sell my home?

By Judy Gratton

That is the question these days.  Unfortunately my crystal ball has been on vacation for awhile.  So, I guess I would say that it depends on your circumstances, and your “local” market.

The real estate market is made up of many local markets.  So reading these national and even some local reports on real estate sales may not pertain to your home.  There was an interesting article on King County real estate in the Seattle Times last week – the headline was “Puzzling plunge: 15% year-over-year drop in county home prices” They discussed the overall decline is home sale prices for October 2011 vs. October 2010.  Even so they made reference to the fact that in Seattle and higher end eastside areas the declines were only single digit. They also noted that sales volume was up.  So again you must first investigate your local market.

In your local market there are also areas and neighborhood factors to take into consideration.  If you have a 2000 sq. ft. home on a busy street it probably won’t fetch the same price as the same home on a cul de saq.  So as much as possible you need to compare oranges to oranges when determining the value.

Next you need to look at your reason for moving.  If you are moving up (to a larger house) chances are you will still come out ahead if you play your cards right.  Let’s say your home has lost 30% of its market value in the current decline- so your home that used to be worth $300,000 is now worth $210,000. Next, let’s say you are buying a bigger view home in a neighborhood that has lost 40% and you are purchasing a house that was worth $600,000 but is now worth only $360,000.  Your loss is $90,000, but the larger home is losing $240,000 over previous value.  You are getting more house than you might not even have been able to before, and for much less.  This on only works if you have enough equity to actually take the hit upfront though.

If you are downsizing the reverse could come into play depending on where you are moving.

If you have to sell your home no matter what-you need to get an honest idea of what you can really expect to receive once the sale is complete.  There are a variety of closing costs that go along with the sale of the home.  If it ends up that you owe more than the amount due on the loan- there are options. 

You could consider renting the property, a short sale, or deed in lieu of foreclosure, and last but not least foreclosure.  Each of these has a variety of aspects that need to be considered.

One more thing to look at is the number of homes on the market in your area today compared to the number of recent sales.  If the inventory of available homes is higher than historical norms and/or rising that isn’t a good thing.  The PI wrote on current inventories: “NWMLS: Low Inventories, Increasing Sales Are Encouraging Signs For Market

No one can predict when our economic picture will change. But with good counseling you should be able to make an informed decision on whether to sell your home now or not.  That requires first and foremost the advice of a Realtor with experience and knowledge in real estate sales in your area.

The good news is everyday someone new has a reason to buy a home.  Someone gets married, someone gets a new job, etc., etc.

I have over 15 years of experience selling homes in the Northshore area including Bothell, Kenmore, Woodinville, Mill Creek, Lynnwood, and Everett.  Please feel free to call me if you have any real estate questions. 

Thanks,

Judy Gratton

Voted “Best of Bothell” Realtor for 2011