Is Now The Time To Sell?

In my previous post I discussed the current exuberance found in the real estate market and the broader economy.  The rising real estate prices, the lack of inventory and the steady stream of buyers have caused many to wonder if they should buy right now.  The answer to that question was yes, as long as the numbers make sense.  Of course the flip side of that question is should I sell right now?  Again the answer is yes.  If you have any desire to sell, now is the time.

Real estate prices are up.  In many areas they are back to where they were or have exceeded their levels before the Great Recession of 2008.  It is definitely a seller’s market.  The anecdotal evidence is everywhere.  I have been getting at least two or three random calls a week asking me if I have any interest in selling.  Other investors I know literally have people bringing them unsolicited offers, very nice offers I might add.  These were things I did not see a few years ago.  The money in the economy is flowing right now and it is flowing, at least in part, into real estate.

All of that money flow and low interest rates have in part pushed real estate prices higher and higher.  Will prices continue to rise?  How long will they do so?  No one can really tell us.  But, the fact remains that if you want to sell, the time to do so is now.

Opportunities Come Only Every So Often

If you wait and ignore the selling opportunity now being presented, it might be ten years or more before another such opportunity comes around again.  Think about it.  The last time we saw a real estate frenzy like what is happening today was in 2006-2007.  It is now over 10 years later and real estate is finally hot again.  Do you want to wait another 10 plus years?  If the market was to slide again, the prices that are here today may not be back for 10 years or more.

Selling however can be a very tough choice.  Should you give up the cash flow that you worked so hard to get?  How much can you expect to gain from selling?  What are the tax consequences?  What will you live on?  What will you do next?  On the other hand, why not cash out?  You will most likely want to retire at some point.  Is now the time?  If not, do you want to, or can you, wait another ten years?  Only you can answer those questions.

This Selling Opportunity Will Not Last

This seller’s market will not last.  Interest rates and other forces will eventually cause prices to retreat.  Those same forces will also quickly dry up all of the money that is now out there flowing into real estate.  I remember the same conditions were around in 2007.  Back then I could find all of the money I needed, but there was little to buy.  Then bam!  Almost overnight it dried up.  There were real estate deals everywhere, but very little money to be had.  The money needed for you to cash out is here now.  You may want to take advantage of it.

There is of course no need to sell.  If your properties are cash flowing well, and you are not tired of the business than continue to hold.  Good cash flowing properties should stand the test of time and there is no need to put them on the market unless you want to.  But, if you are looking to retire, or are looking get out of the real estate business, now is a really good time to think about it.

What are you seeing in your real estate market?  Are you thinking about selling right now?  Wny or why not?  Please share with your comments.