The Benefits of Selling in a Soft Market

It is a well-known fact that, over the long term, the value of real estate goes up steadily. But that doesn’t stop it from spiking and dipping along the way. In recent years, we have seen a dramatic increase in home values; however, over the past year, we are seeing home prices in some communities begin a downward trend. How much prices will continue to dip is an unknown. And for many homeowners who are on the brink of deciding whether or not now is a good time to sell, this uncertainty can be agonizing. Should you wait to sell your home, hoping that prices will start coming back up soon? Or should you sell now before prices drop even further?

Believe it or not, there are benefits to selling your home in a soft market – particularly if you are doing so with the intention of buying or building another home. You see, if the housing market is down, you may end up selling your home for a lower price, but you are also likely to buy or build your new home at a relatively lower price. In an up market, the reverse applies. In other words, all the market dips are countered because lower selling power means higher buying power. And if you are building a custom home, you can expect lower land acquisition costs in a soft market as well.

Down-sizers are looking to buy

As our population ages, many people are looking to move into smaller homes. As people retire and children move on and move out, they may need less space, or they may simply want less expensive homes so they can cash out some of the equity in their current homes. Whatever the reason, this soft market is a great opportunity to sell to down-sizers. It also means that down-sizers may be willing to buy larger homes because they have that extra buying power.

A new home today may sell for more in the future

As mentioned earlier, over the long term the value of real estate tends to go up. That means that if you were to sell your current home and build a Quality Home, the value of that Quality Home is likely to increase, meaning that you will likely be able to sell it for a tidy profit in the future should you wish. Its value may increase even more than your current home will due to it having more modern features and possibly a better location.

You can’t time the market

If you are both selling and buying, then it really doesn’t matter if it is a buyers’ or sellers’ market. Trying to “time” the market is ill-advised and most people who try are unsuccessful. Selling your home now could very well mean that you will get more than you would next year. Or not.  The best thing to do is whatever is best for your family regardless of the market conditions. If it is time for you and your family to move on (whether that means buy or build), because you need more space, require something more modern, or need to move to another location, then don’t put it off because you are trying to time the market. Start the process to get into a home that works better for you and/or your family.

For a consultation on building a new home, contact us today.

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