The time to sell is a waiting game for some
By Megan Hopkins • March 21, 2013 •
Real estate is always a game of knowing when to make your move. With that in mind, industry experts suggest move-up buyers remain mindful of how quickly home prices appreciate while riding the current market recovery. For move-up buyers wanting to wait out rising home prices to ensure they can sell their current home at a maximum price, analysts say the value of such a move depends on when the homeowner purchased their current residence.
Daren Blomquist, vice president of RealtyTrac, says homeowners who purchased during the down market of the last two or three years would be wise to move up in 2013. "Because they bought near the bottom, these homeowners should have built up some good equity that can go toward the purchase of a new home, and waiting longer to build more equity likely won’t provide much advantage given that other homes that they might want to move up to will also be appreciating at roughly the same pace," said Blomquist. He added, "In addition, the low interest rates of 2013 are certainly not guaranteed to last forever."
However, for homeowners who purchased near the peak of the housing market — in the past five to seven years — it’s probably better to wait for home prices to rise further before they sell and move up, Blomquist advises. "If these folks need to move because of a job or other reason, it is worth considering renting out the property in the short term to take advantage of the strong rental market," said Blomquist.