Putting Your Real Estate Plans On Hold?

Putting Your Real Estate Plans On Hold?

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Roger Rojas of US Bank provided many of the bullet points for this piece.  Thank you Roger!
Many buyers and sellers are putting their real estate plans on hold, waiting for interest rates to fall (not likely any time soon according to my crystal ball) or prices to change in their favor.  Yet - life goes on; people need to move.  There are more than a Dozen D's of life changing events that precipitate a move (Diapers, Diplomas, Dating, Diamonds, Dogs, Development, Divorce, Destination, Debt, Downsizing, Disease, Death).  
There are advantages to both buying and selling in times of higher interest rates; not high by historical standards, but higher than what we've grown accustomed to.  Here are some of them:
Pros of selling in a higher interest rate environment:
- Less competition –  with less inventory, your listing will stand out more, attracting serious buyers
- Serious buyers – during a market downturn, buyers are often more motivated and better qualified, and prepared to pounce at the right opportunity
- Potential for faster sales – motivated buyers and less competition can lead to quicker sales
- More all cash deals
- Downsizing opportunities – a market downturn provides better conditions for purchasing a smaller property
- Tax advantages – depending on circumstances, there are tax benefits / incentives associated with selling during a market downturn
Pros of buying in a higher interest rate environment:
- Lower prices / more value – purchase prices are lower and more stable, offering a chance to buy at a more affordable price
- Negotiation power – some sellers are more willing to negotiate on price and terms, including rate buy-downs, giving buyers greater bargaining power
- Less competition – with fewer qualified buyers in the market, the chance to stand out is greater and less of a chance for multiple bids and a bidding war
- Higher ROI – real estate appreciates over time; buying in market downturn positions buyers to benefit from future property value increases, often at higher rates of return
- Tax benefits – homeowners may qualify for tax deductions, mitigating IRS tax implications and providing financial advantages
- Control and adaptability – homeownership offers payment stability and control over living space personalization
- Avoiding the nightmare of renting - skyrocketing rents offer no opportunity for appreciation
If you or someone you know is going through a life changing event, we should speak about the various housing options and the benefits (and drawbacks) of selling, buying, renting, moving and staying put.  I love having these conversations; please reach out.

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