Hi Loretta: Sell now or later? The answer lies not in the Realtor world but in your own. Here's why: The market is DOWN. Selling a stock at the bottom is the surest way to lose money. Same with real estate, EXCEPT that in both cases, there's one other big consideration. What is your alternative? Selling a stock of a company going nowhere and buying stock in a company poised to grow means you're getting off a sinking ship for one thatâ€™s going places.
Real estate is not a lot different. NO ONE can do more than guess where we'll be in the next two years. Perhaps it will take ten years to recover. Obviously, a long depression WILL have an impact on housing prices.
Having said that, what are your own alternatives? Move up to a bigger, nicer home? Cash out and rent? Big difference in strategy! You can't cash out easily in this market; there are just very few qualified buyers. That means you'll cash out lower than last year or some year (don't know when) down the road. If your goal is to move up to more expensive real estate, the situation is quite different. If you suffer a loss, so will the seller that you are buying from. Generally speaking, it's a wash, with one equaling the other. EXCEPT that the LARGER home you buy will have a discount on a LARGER amount. At the same percentage (if you can pull it off) you will have a better dollar profit (or saving, if you prefer) on the discount you get then the one you were forced to give. Then, there is the appreciation (we certainly hope to see appreciation in the long term) on a larger investment. At the same percentage, you will have a larger dollar profit on the larger investment.
Finally, there is the mortgage rate consideration. Mortgage rates arenâ€™t going to get much better and historically, have been far worse. Getting a low rate and staying with it is another sure way to profit in this market.
One of my stockbroker's favorite expressions is that "Money goes from weak hands to strong ones in most markets." This may be your best opportunity to profit more than usually.
Remember that your primary reason for owning a home is comfort and lifestyle. Please be sure to keep that uppermost in mind, rather that financial profit. Of course, you can't choose comfort and lifestyle you can't afford (as we see in the foreclosure rate) but decide what best for you and your budget and go for it.