Many homeowners who considering selling in today's market are wondering whether they should sell now or wait until the market "improves." Most think that the market is "bad" and that now is not the time to sell.
Well, while the market has changed, it is still a good time, maybe the BEST time, to sell... "IF" you really want or need to sell. What do I mean? The experts are predicting that the market here locally will probably continue to decline for another 18-24 months. The average decline in many parts of Northern California is a drop in value of about 1% per month - OUCH! Remember, this is an average, so it's better in some areas and not so great in others.
So, if home prices are expected to continue to decline for another 18-24 months, if a seller REALLY wants or needs to sell, then NOW IS THE BEST TIME to ensure they maximize their equity and capitalize on their potential profits. In other words, for every month a seller delays selling, they could be losing a few thousand dollars in value.
My advice to my clients right now is this: if you want or need to sell within the next year or two, then selling "sooner" rather than "later" is the prudent thing to do. If you are in no hurry to sell, and you can either rent your property or stay put for a while, then do so.
How long should you expect to stay put or rent it out? Well, while nobody knows for sure, it looks like it may be another five to six years, or more, before the market comes back (may come back) to where it was in 2004 and 2005. Even if the decline reverses in 18-24 months, then property values will take another few years to appreciate back to where they were a couple years ago. Remember, however, that nobody really knows for sure what will happen in the future. In the 1990's, it took about 10 years for prices to "come back". Nobody really expects this time to be as bad as then, but we never know for sure. Time will tell.
Of course, every situation is different. So, if you'd like to discuss your situation and your options, please give us a call. We'd be happy to discuss the possibilities.
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