If you have been following the recent discussions on recession and the upcoming expectations, then you are familiar with what this could mean for Seattle as a whole and for real estate. If you have not been following along though, let me bring you up to speed. Matthew Gardner Windermere’s Chief Economist sat down for an interview with Ron and the two of them dove into the topic of recession and provided a better understanding of what exactly a recession is and how it could affect Seattle this time around. A key takeaway from their discussion is that housing is not projected to be the cause of the next recession and likely will not crash nor be affected like it has in the past recessions. However, simply dissecting all of this does not tell you if it is still a good time for YOU to buy a home or sell your current one. So, if you are debating buying or selling don’t worry, Ron is here to lend you a helping hand and guide you in making such a big life decision.
To recap the 3 main criteria that Gardner claims are the important questions to answer when considering investing in real estate; 1. Are you secure in your job? This question is challenging you to ask yourself if you have a stable enough job to take on this responsibility, not a temporary or startup position. 2. Are you comfortable with the debt level you would be taking on and with that mortgage payment? You will be making this payment every month and owning a property means you need to account for other unexpected expenses for things like repairs and maintenance. The last question Gardner asks is 3. Do you plan to stick around and live in that house for at least 7 years? By this Gardner means that you are not looking to flip, you are looking to invest and stick around for a bit. If your answer was yes to all three of these questions than you have the “Gardner blessing” to buy a house.
Now to change the focus over to selling criteria, here are Ron’s three thoughts on selling in the Pacific Northwest:
- CAN I TIME THE MARKET PERFECTLY?
The short answer is “no.” But let’s talk about the motivation I think is behind this desire. We live in a particularly hot real estate market over the past few years. In fact, it was the hottest market in America for quite a while. Nearly everyone heard stories from friends about someone doubling or tripling their money in a short amount of time in a real estate deal. That leads many to think that if I’m going to sell, make sure to do it “at the right time.”
I like to turn that notion on it’s a head a bit and ask, “What is the motivation for you to sell?” If it’s purely a money play, then yes, we can pay particular attention to the mood of the market. We can watch the trend lines and try to predict the mood of buyers. But for most people, they do not have unlimited time and money. When it’s time to sell, it’s time to sell. I believe the right “time” in the market is when you are ready. Position your property to get the most
you can when you can, and that’s timing the market perfectly in my book.
- WHAT’S YOUR WHY?
Are you selling because of something or for something? That can make all the difference in the world on how to approach things. For example, if you are selling because you have to for health reasons, a death in the family, or a divorce – maybe the timeline is the most important variable. However, if you are moving because you had a baby or got a big promotion at work, these factors will loom large in how to approach the sale.
- GET READY FOR SOME BIG EMOTIONS.
Without fail, a transaction this big is going to tap into some deeply held and powerful emotions. Anxieties around money and moving and nostalgia are powerful. I like to lay the groundwork for these from the very beginning. At some point, tempers will flare. At some point, frustrations will mount. At some point, emotions will rise. I like to establish some expectations and language to deal with these issues and not be surprised when it happens. It’s a natural and expected part of the process.
If your still feeling a bit unsure about selling your home or the process it entails, watch the short video below that Ron made describing the process of a CMA (comparative market analysis) of a home.
For questions regarding a free consultation or CMA of your house please leave your contact information here.