Fear vs. Control

The real estate market for 2009 has people exhibiting new behaviors. Many people are perplexed as how to best navigate in this adjusting market and we have found that some are operating from a stance of fear - rather than a stance of control. As we all know, information is power so whether you are looking to buy or sell, you must rethink your steps and consider the following:

Do you currently own a home?

Will you need to sell your home in order to trade up or down?

Do you have equity in your house and how much?

Can you qualify for a bridge loan?

Could you carry two mortgages and for how long?

These are all valid questions to ask yourself and to discuss with your realtor before you set out to purchase or sell a home.

For the past six years if you were considering purchasing a new home, you may have gone “shopping” for a new house, successfully negotiated a contract and then listed your house for sale. You weren't fearful about selling your home because real estate was exchanging at a rapid pace. Now that the market has adjusted, and homes are selling at a considerably slower, yet more normal pace, you may have lost your confidence. Now is the time to attack your fear and reposition your expectations.

Instead of “purchasing first”, consider placing your home on the market in combination with your search for a new home. It will allow you to obtain the pertinent information regarding the true value of your home as well as help you get a better handle on the net proceeds from the sale of your house. Because homes are taking longer to sell, you will most likely have the time to find a new home before you must move. There are several terms and conditions that can be added to a purchase contract to protect you during this period of transition. More importantly, selling first and buying later just might remove the knot in your stomach over the question, "What if I can't sell my house?" Remember all houses sell, so arm yourself with the current information so you can make an educated decision.

The current market is tricky...and your position will be stronger the more you control the process! Do not get caught up in the fear. Plan ahead and realize that real estate will always trade because families will outgrow their current home, people will relocate and empty nesters will no longer need the “big house”. Get in front of your anxiety and drive yourself into a new home!