Tuesday, September 22, 2015

Time to Move Forward?

I just read the report of a study saying that Americans now have the greatest gap between what they think their homes are worth, and what an independent appraisal shows.  You can see the problem here--how can we sell your property for what you want, if you think it's worth more than the experts do?  That doesn't mean that some buyer might not agree with you about value, but the general idea suggests that many homes wouldn't sell for what the owner would agree to take.  Recently, we had one homeowner who wouldn't accept an offer for the full listing price, because it didn't seem worth it to them to move for that amount. 

This brings me back to the old proposition that it doesn't matter whether you sell low or sell high, as long as you are buying in the same type of market.  Therefore, if you sell your current property for 10% less than you think you should get, if you are honest, you are probably buying your new property for the same differential.  At some point, you need to move on with your life, whether that means upsizing, downsizing, changing towns, or just changing.  It's better to do that when rates are (still) historically low, which will matter more in the end than the price you pay.  And it's better to live your life in the present, not the unpredictable future.