Everyone wants to know, is it a good time to buy?! Is it a good time to sell? Should I wait? Should I hurry? “We’d like to get this on the market quickly because prices are so high right now.” I get the picture, everyone wants the odds to be ever in their favor, and we have all heard horror stories about buying high and selling low. Ouch. 2009 we're looking at you. In real estate, and in any big decision, fear is your enemy. Caution is good. (Buyer beware! Seller beware, too.) But fear? Never helpful.
I think it helps to start with the facts. We live in South Florida (blessed truth, though it may come with a couple of months of scorching heat) and it will never be an unpopular location. So truth number one is to invest early and often in this place. Buy something in your twenties. You can probably live in a studio. Buy it. If that opportunity has passed you by, (who’s in their twenties anymore?) oh well. Don’t waste a minute in remorse! The point is, get in this market as soon as you can.
I think it helps to start with the facts. We live in South Florida (blessed truth, though it may come with a couple of months of scorching heat) and it will never be an unpopular location. So truth number one is to invest early and often in this place. Buy something in your twenties. You can probably live in a studio. Buy it. If that opportunity has passed you by, (who’s in their twenties anymore?) oh well. Don’t waste a minute in remorse! The point is, get in this market as soon as you can.
Truth number two.
If you’re looking to upgrade your primary residence, today is “better” than tomorrow in average market conditions (real estate always rises as a rule so “average” is “rising”) because you are increasing your overall spending. Suppose values are projected to rise by 12% this year, so 1% every month. That 1% is a lot more dough when applied to your new mortgage on a $2,000,000 home than it is when applied to your paycheck from selling your existing $750,000 home where you possess $600,000 in equity. So upgrade sooner rather than later. Fewer of these *hypothetical* 1% increases/fewer months passing will be much better for you.
Truth number three.
The opposite is true if you’re downsizing. If the market is rising, wait as long as you can to sell your big property and purchase your empty nest! The differential makes the most sense that way. Your big property is earning you tens of thousands of dollars each month that you let it rise whereas the same percentage increase applied to your downsize will cost you very little.
Truth number four and the most important.
The biggest factor in timing the market for your primary residence purchase is your life. Your paycheck, marital status, relocation. Your desire to be on the water. Your dream home appearing on the market *poof!* one day. Your school zone! Your life! This is a huge move. A big decision. A lot of money. But what good is it if it’s all business? The goal is for your purchase to serve you well. Can you afford it and do you love it? Are you planning to stay for more than 5 years (this is the length of time it takes to recoup any closing costs and absorb any downturns in a shifting but steady market—an average market. Which by the way, we are not in. But just to be safe.) Are you ready to move? Have you outgrown your current home? Are you ready to relocate your business? You may be pleasantly surprised to find out, it’s really all about you!
I’ll help you be savvy enough, nobody wants to be a dolt even if they love a place. (And if you’re an investor, reach out to me for different advice!) But as for your primary residence, if you’re lucky enough to be living and trading property in South Florida, you’re fortunately in a position to buy and sell when you’re good and ready.
Cheers! Here’s to you.