C, Home Buyer in Sacramento, CA

Market on the Rise - Good Time to Sell?

Asked by C, Sacramento, CA Tue Mar 26, 2013

I jumped into the real estate market when it plunged and was able to snatch up a couple of foreclosure properties. I really didn't know that much about real estate at the time except homes were cheap. Now that the market is on the rise, I was wondering if now is a good time to sell or if I should rent them out?

Help the community by answering this question:

Answers

10
Eddie Martini’s answer
What was your goal when you purchased these properties initially? Do you have a better use for the funds that are tied up in your property? I have several clients who are looking to list in this market that purchased in 08 and 09. For them we are looking at over 60K in equity gain since initial purchase date per property. They have other uses for the money now and will probably still hold on to a couple properties to stick to our initial game plan of doubling our price/sqft.
0 votes Thank Flag Link Fri Mar 29, 2013
couldn't be better, unless of course prices continue to rise and time is on your side. There is not enough inventory of homes for sale to meet the current demand which means multiple offers, many times above asking and even multiple cash offers. It's best to sit down and look at the properties in question and give you a better idea on value so you can make an informed decision. Contact me at your earliest convenience.

Mike Schubert
Better Homes & Gardens
(916) 799-8300
1 vote Thank Flag Link Tue Mar 26, 2013
I had the same question so started reading economy books. I suspect you might have some of the same concerns as I did about where best to invest. Stay in real estate or sell?

My favorite book on economics is Aftershock, written by the same economists that predicted the dot com bubble and all the rest of the crises we have been experiencing. I am in agreement with them that the political control of our economy right now has created some illusions that cannot be held forever. Namely, with unemployment as high as it is (we have the lowest participation of actual employment in the workforce since 1978- forget what the press is printing because it doesn't count those that fell off of the unemployment rolls) there is still alot of distressed homeowners. Our debt continues to rise affecting the value of our dollar, and the FED cannot print enough money once the dollar destabilizes. The interest rates will rise and the FED will no longer be able to control it. If the mortgage rate rises to 10%, they expect a 30% decrease in property values.

From a buyer's perspective, they are looking at the same affordability as now. A buyer can qualify for about 1/3 of their income in qualifying for a loan. If interest rates go up, the price of the home being reduced will still mean the same monthly payment.

From a seller's perspective, you have a window of opportunity. Supply and demand have forced prices up quicky. This will continue until interest rates rise, so I expect that you'll have a very clear indicator as to when the values will shift. If you stay in the market, expect to be in it until we fix unemployment and THAT is more difficult to predict. And if you want to sell now? There's some creative ways to guarantee the best price, often above appraisal value.

The decision is yours, dependent on what you expect to happen in the market, but I suggest you pick up the book Aftershock. I really believed what I read to be accurate.
0 votes Thank Flag Link Sun Apr 7, 2013
It all depends on your long term investment goals and if you need the money now or later.
Because of low inventory homes that may be otherwise difficult to sell are now selling. Talk to your tax person before selling to avoid any surprises.
0 votes Thank Flag Link Tue Mar 26, 2013
Hello Mr. C...

I think if you wanted to sell you would be amazed at what you'd get. I think we are pretty much back at what the prices where in late 2003 or so.

The problem is...? what are you going to do after... do you have an exit strategy... do you want to move up and do a 1031 Tax Deferred Exchange into something else..?

My suggestion is to contact an agent or broker to have them prepare a comparable market analysis to give you an idea what those properties can potentially sell for.

Rental market is good as well so that is also a good option.

I hope this helps.

Make it a Great Day...
0 votes Thank Flag Link Tue Mar 26, 2013
Hello

It's a fabulous market for sellers right now. It is absolutely a seller's market and a great time to sell. Inventory is low and the buyer's demand is high, which is a formula for more money for you.

On whether you should sell or rent them out would depend on your financial goals. When you bought them was your intention to hold on to them and rent them out for a monthly income? Or did you intend to buy and wait for the market to go up and sell and use that money for something else?

The real estate market is cyclical and will always go up and down. I would think whatever you decide that it would be in your favor.

Sincerely,

Jaime Becker
Lyon Real Estate
jbeckerRealtor@yahoo.com
http://www.SacramentoHomesByJaime.com
Off: 916-484-3610
Cell: 916-715-7454
DRE# 01737783
0 votes Thank Flag Link Tue Mar 26, 2013
This is a great time to sell. There are numerous buyers out there. If your house is in fair condition, decent area and priced well, you can have multiple offers within days! I am also a property manager and the rents aren't going up but prices are.
So, you can almost name your price, but if you are looking to buy something else, STAND IN LINE.
Nancy

Nancy S Bergman
Realtor - Lyon Short Sale Certified
Property Manager
DRE # 01893550
Lyon RE Downtown
2801 J Street
Sacramento, CA 95816
Primary: 916-400-1355
nbergman1@live.com
0 votes Thank Flag Link Tue Mar 26, 2013
This is definitely a great time to sell. Houses are often times selling above asking price and getting multiple offers immediately. Nobody knows what will happen tomorrow, but sellers can definitely take advantage of the current market today.

Let me know if you need any further assistance.
0 votes Thank Flag Link Tue Mar 26, 2013
It is a great time! I wish I were ready to sell my house and am jealous of those who ARE ready so I settle for living vicariously through my sellers!
0 votes Thank Flag Link Tue Mar 26, 2013
No one can predict the future. This snapshot in time is certainly a good time to sell. Prices are higher than they've been in many years, but not yet back to the peak of 2004-2006.

Any decision whether to sell or rent has to be based on your financial goals, need s for the cash, etc.

Take care.
0 votes Thank Flag Link Tue Mar 26, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer