Friday Follow Up: Should I Sell My Home in this Economy?

On Friday's we will try to provide answers to questions we hear often and that we think you might want to know but haven't had a chance to ask.  So we are starting with gusto and going after a difficult question to start: Should I sell my home in this economy?

This is a tough question to answer of course, because there are a lot of “it depen

ds” that would be part of this answer.  But I do want to share some key information that might help you if you are wondering about how the current economy might affect your decision.

First, Martin Brown, in his post gives a great summary of what exactly happened -- and what it means for you. In essence, what we now know is that there were way too many risky loans given both by banks and in particular Fannie Mae.  This is only a part of the problem our economy faces, but has certainly loomed large in the face of the housing market. 

So with all that being said, should you sell your home? 

From Donna Skelly (Broker/Owner, McAnaw & Company Realtors)

Most people assume that because we want to make a commission, we as Realtors would say, "Yes, of course you should."  However, you will find that good, ethical Realtors will help you answer that question honestly by helping determine if a move is in your best interest.  Will a move improve your life?  If the answer to that question is "yes," then you should sell.  You may get less money from your house than you would have five years ago, and you might sell it for a greater price a few years from how.  However, if you want a different home, your purchase price will be lower and offset your current loss. 

If you are losing equity, you must consider whether or not it is worth it to get where you want to go.  DO NOT try a price above market value just to see what happens . . . because nothing will happen.  It is a waste of time and effort because the competition is fierce, and there are many motivated sellers out there who will price their property to sell.

The bottom line is that if you want to move on to the next chapter of your life, go.  If you sell lower, you can buy lower.  If you sell with equity, you can invest your cash into low priced investments that will triple the equity you may have lost in your previous home.

Let us know if you have questions you would like for us to answer in the comments below.