Transcript:
Easan Arulanantham:
I feel I missed my window to sell my house at the peak and move, should I wait until rates go back up? Or rates come back down and housing prices come back up? Or does this even matter? Am I trying to really min max in a situation where I don’t need to? Yeah, this is questions that have come up in our client strategy sessions, you know, people that had thought about the possibility of selling and moving out of the area and moving someplace cheaper for their retirement possibly, or during their retirement or whatever the scenario is, and, you know, let’s face it, who gets the peak, right, and who actually sold their house at the peak, some of those people were pretty smart, but most of them were probably just pretty lucky.
Tom Vaughan:
It just kind of how it works. And so I think you have to resign yourself to the fact that you’re not going to get the peak you’ll sell and you’ll look back and your friends will be telling you how much their house is worth. Now, you know, anything, oh, man, I wish I would have waited, or, you know, you’ll find the market starting to soften and you’ll wish I should have sold before. That’s the chance of that happening is actually really, really high. I mean, the chances of you being totally satisfied at the peak. So part of that is just sort of a mental adjustment to reality, as far as that goes. But the rest, honestly, right now, if you look very closely at what’s happening with homes, the actual price of homes nationally, at least, has continued to actually go up and hold. What is happening is that we’re seeing longer term, you’re not getting, you know, the eight hours later, you got 25 bids, you know, all massively over, you know, current price and that kind of thing. So that has slowed down. So I think you know, right now, it’s still not a bad time to sell. I don’t think that’s a big, big issue. It does matter kind of where you are in the market.
One of my clients is actually she markets for a big home builder. And they’re a luxury homebuilder, but they’ve kind of spread out their packages to include condos, and they’re seeing condo sales kind of have more trouble than their big three $4 million houses. Because again, probably that group that’s coming in to try to buy something less expensive is going to be more impacted by the increase in mortgages, then possibly the group that’s up in the upper end, maybe they’re selling another house, so they got enough money to make it work, or they have stock options or you know, whatever that might be. So, again, it depends on what type of house you have, as to exactly where you are and what market as far as that goes. But I wouldn’t worry about it. If I needed to sell or wanting to sell. I’d sell right now, without any problems. If I had some flexibility, I might wait. But the problem with waiting, is you could be waiting for a decade. To get back to this price. You have to be really aware I’ve been to what the question was, should I wait for rates to drop? And you know, basically, then maybe the price comes back up? Right? Wow. I mean, if you could tell that. I wouldn’t be playing that game at all, no way. I take what I have now, if I needed to and not worry about it and just you know, understand that I was probably never getting the peak anyway. Right?
I mean, because I there’s probably more risk that you’d be wrong there. And that prices go down and down. You’re waiting forever to try to get back to what you could have done today. Right? Take what you have today, if that’s the option.
Easan Arulanantham:
Yeah, and a lot of people are trying to look for that perfect ideal exit case. But you know, sometimes we have to settle for good enough. And, you know, we don’t always have to go for that perfect. Because when you think about if like I’m selling at this price may and like it’s come down a little bit, maybe where I’m buying now is going to also be coming down in parallel. So like, there’s also when you buy you also want the price to be coming down too, right?
Tom Vaughan:
Yeah, that’s a good point, actually. Because you might be selling in this area, if you’re selling in this area, the demand is still pretty good. There’s still stock options. People are hating the traffic. So they’re willing to pay, you know, a premium to be closer to work. A lot of the work is in same places, you know, that kind of stuff. So and you might be moving to another place that doesn’t have that kind of employment dynamic. And they could be falling more than yours is maybe you’re down 3% from the high and they’re down seven. Right. So you’re exactly right. It’s not just your house, you’re going to theoretically I would assume by something else. Right. So yeah, that’s a good point, too. So, you know, sometimes that can work out to your advantage. You know, especially if you’re a kind of a lot of our clients have sold homes because of retirement. They’re in retirement or heading into retirement and they’ve cashed out the values of their homes and, and again, it depends on I don’t know where this person lives. Everybody lives that might ask this question but you know in our area here pretty good chance even though it’s off the high you’ve made some money yep right because the price the houses did so well here so you know take that and be happy with that right.