Chris: Bid um or hold um — the age old question. Agents Brooke, David and both John’s have given you valid answers. And the home seller in Akron makes a very VALID point. But, this is NOT rocket science. You know, we all know, that 2004-2005 were the hottest years in real estate. According to national home sales statistics. Some argue that the value of homes was “run-up” by a real estate market run amuck during this period. Maybe so. Given what all of us can read in any newspaper or magazine, one could certainly make that point. But, the real estate market, like commodities, food, securities, computing, oil, gas, etc all seem to follow a cyclical path. If we could accurately measure the timing for ups and downs in each, we would all be rich.

So first, let’s look at this philosophically. What do they say in the securities business — “buy low, sell high”. You would accept that. We all can. Making that happen is the trick. Generally speaking, we are in a miserable market — if you are a seller. If you are a buyer, we are in a great market. Or, to say it another way, it is a “buyer’s market”. That is an economic FACT, not the opinion of a group of individuals with a vested interest.

Second, let’s look at this logically. If you sell, you will probably get less for your home then in a seller’s market. Not much to argue with there. And if you can buy a home for much less than what it might sell for in a seller’s market, you are ahead of the game. Maybe way ahead. But, YOU have to do both — sell and buy. Nuts. Guess we would have to measure TIMING as a DUD or VIRTUE by the net result of the sale and purchase.

Ah, but there are other factors which “just looking Bill” has failed to consider. Interest rates are going UP because of inflation. So, if you waited to sell for a BETTER market (as you and the newspaper industry might term it), and the net result of your delayed “sell-buy decision” proved to be better, the ODDS are you will have to pay more interest on your loan. Maybe a half point or even more. Google “Mortgage loan interest rate projections”. Then, how would that decision (HOLD them) look if you could not pay cash for the home today. Now, the Akron home buyer’s comments are certainly worth looking at closely. The length of time to sell a home (dependent upon the area) has doubled and tripled. Now it takes 120 days on average in our area (it is a price sensitive market) compared to 30 or 60 days in 2005 and 2006. Frankly, it is easier to buy a home then it is to sell.

So, put your home on the market and look for homes at the same time. If you chose to make an offer before your home sells, make your offer CONTINGENT upon the sale of your property. Hedge your bet. Sellers are taking contingent offers right and left today.

To conclude, I spent 34 years in the corporate world — only 9 in real estate. “Buy low, sell high” is not a saying that is unique to real estate. Do your agree? I am providing you with 2 links to the MEDIAN PRICE of homes (sales and appreciation) from 1968 forward (national statistics — real numbers). If you think that BILL has a valid point, try justifying in your own mind how 39 years of US home sales data could support his position (“…..whatever home you buy now, will be worth less in 5 years”). Bill needs to do his homework.

Copy & paste links below:

http://www.scribd.com/doc/3675699/US-National-Association-of…

http://www.scribd.com/doc/3675696/US-National-Association-of…

Chris,

Take this for what it is worth. Like you, we decided it was time to upgrade. We found a new home we really liked at a very good price and bought. Now we are trying to sell our "former" (I say former with tongue in check) home. We are now paying two mortgages. Fortunately, we can aford this for a period of time.
If I was to do it over, I would sell my "former" home before even looking for a new home. as this is a buyers market and there are plenty of homes out there. I'm sure we could have found another "dream home" (probaly at even a better price) and we wouldn't be paying two mortgages and worrying about when we will sell the "former" house.

Hi Chris,
Jusr read Bill's answer about buying your new home. Some where along the way people got hung up about this idea of your home being an "INVESTMENT". Well, to some extent, this is true. Over the years, real estate has been a hedge.
Recently, real estate was the latest quick runup-similiar to the "dot.com"in late 1990's & the subsequent bust of 2000. Part of the reason for the mess that we are in, is that people have taken the equity out of their homes already by refinancing them or encumbering them through home equity loans and /or lines of credit.

First & foremost, your home is the refuge for you & your family to have a safe, secure & comfortable place to find your hang your hat.
From what you have stated, you have simply outrgrown the home that you are in now. It sounds like its time to get it up & sold so that you & your growing family can find that new home that you need. That is where you need to put your emphasis. Can you be checking out other house to get a better idea of what you like & don't like, what you can afford & whaich areas are the most attractive to you? ABSOLUTELY!! Do all of the looking around, If you are not in a position to be facing 2 mortgage--DON"T BUY THE NEXT HOME UNTIL YOU HAVE A DEAL LINED UP ON YOUR HOUSE.
A competent Realtor can often times co-ordinate the closing dates of properties to make things work for both parties to benefit. Sometimes, its not easy!
Again, I suggest that you a reasonable idea of what you house will sell at in todays's market & what you could expect to put in your pocket when all is said & done.
Please give me a call at 440-487-2193 or at jwirsing@kw.com

I will be the lone person to tell you to not buy ANY home right now. The real estate pro's are always going to tell you that now is the time to buy. They don't have a job otherwise. You need to look at the current market and where it is headed, which is down. Whatever home you buy now, will be worth less in 5 years. We are in an economic time that has never before happened in our country. Do not believe the "experts" because they are the reason we are moments away from a full blown depression. The commercial real estate market is teetering and will more than likely collapse in the next 3-5 years as the speculation loans come due. The home market still has 5 more years of bad loans that will default made to people who should have never been given loan for house in the first place. That will continue to drive down home prices. The real estate professionals are very scared and rightfully so. There is nothing anyone can do to prevent the billions of dollars of defaults that are absolutely necessary to put the market back on a normal slow growth healthy tract. I hope I have helped you. Please research on your own as there is plenty of information written by economic professionals who are not well liked by the "Wall Street" establishment. Once you begin to read what these "renegades" have to say, it becomes very apparent why the "Wall Streeters" do not like to hear that the fraud they have committed is turning into paying the devil his due.

Hi Chris,
The present market conditions are a great assist to STEP-UP buyers like you.
It sounds like you have realized that your home may not yield as musc on the market today as it may have 12 months ago. That is unfortunate. But, you can make this market WORK FOR YOU!
The nice part is that the home you may be buying has most likely also lost value over 12 months ago. Often, the more expensive that home is means that it has lost more dollars than a less expensive home.
You may find that you can now buy a home that 12 or 18 months ago was out of your price range.
I have lived in the Lake & Geauga markets for the past 30 years. I grew up in Wickliffe. So, I am familiar with the area.
If you would like, please call me at 440-487-2193 or e-mail me at jwirsing@kw.com. I would be happy to give you a FREE market analysis of what homes similiar to yours are selling for, (not what theya re listed at) and an estimate of your net proceeds.
I also have a "Round trip Loyalty Bonus" for people who list a home with me & then buy their next one using me as their Realtor.
Look forard to hearing from you.

If you have been there for over 10 years, your home has appreciated even in this buyers market. The problem is you will never have an opportunity like this for buying another home, maybe in our lifetime. The market is coming back and buyers are buying! You may save more than enough on your new home to make money even if you break even on this home. Call a good local Realtor and get their opinion on pricing and sales time for your current home. I know a couple of really good ones in your area if you need some help. Good Luck!

You should get a professional appraisal or get a Realtor to do some CMA market data searches for you (Realtor will most likely be free!)...This should give you a start in the right direction...