Many owners have been patiently sitting on the sidelines hoping for that “crystal ball moment”, the “Aha” moment as Oprah would call it, to know the right time to sell their home. Well unfortunately those moments usually hit us when it’s a bit too late. Let’s take for instance the past 18 months regarding buyers and property values.
In Q2, 2012 there was low inventory and the market was requiring over asking bids in order to win a the multiple offer situation as property values (get your property value now) were on the rise. At that time an over asking bid of approximately $15k was often enough to outbid the competitor in many instances.
During that time, I had buyers tell me, that they would wait until the end of the year when property values decreased to purchase. Rather than argue my opinion that a slight sign of recovery was on the way, we parted ways with thought to reconnect Q4 2012.
By year end, property values (Q1 Real Estate Snapshot) had not decreased as past buyers had thought, but quite the contrary. The second week in January, the buyer flood gates smashed wide open and the slight over asking bid of $15,000 was no where near the mark to win a bid in most cases. As sellers watched the mayhem, some noted that it might be the right time to sell and put their properties on the market.
What I’ve witnessed in the past several months is property values on the rise, multiple offers with few contingencies (if any) including waiving the appraisal contingency and buyers bringing upwards of $60k or more on top of the down payment, to make up for the difference of the offer price versus the appraisal.
Now let’s throw in the mix the interest rates of late. Knowing when it is the right time to sell can also be discovered by understanding the stock market, Mortgage Backed Securities (MBS), unemployment rates and the like. While I am certainly not an expert on the subject, Shashank Shekhar, Arcus Lending fits the bill to help understand these issues. He recently wrote about the subject, MBS Blood Bath – Worst Week For Mortgage Rates On Record, to further explain.
Is it the Right Time To Sell? Knowing your property value is not the only factor to consider. What will happen to the buyer supply if interest rates continue to rise? In my opinion, the buyer frenzy will slow, properties won’t sell in record time (48-hrs) and sellers will have missed out on this particular opportunity. Want to know your property value? Just ask me! Food for thought….