Interest rates, refinancing, house-hacking, oh my! Real estate buzzwords have their ways with confusion and intimidation. You might be better off wrangling a lion… or tiger… or bear… oh my…
You know what can be exponentially more confusing? Your bearish uncle and bullish brother-in-law arguing over the timing of the housing market… So, who’s right?
Your uncle decides to whet the table with some analytics: amongst 20 cities, San Diego recorded the smallest increase in housing prices month-over-month for the second time in a row. Now, property is extravagantly more expensive in an area as sought after as San Diego, which definitely contributes to the slow down.
If we head a little ways east towards the mindset of your brother-in-law, Phoenix continues to roll out impressive demographic trends along with a growing median home value. Young professionals continue to file in for their first property purchases and contractors reportedly slow down on construction to ease the potential pain of a recession further lessening supply and increasing demand.
So what does all of this mean, exactly?
Whether you’re a well-seasoned investor, first time home buyer, or simply browsing the internet on your twelvth video tour of $50 million dollar estates, you most likely don’t know for sure… and that’s because there isn’t a single person on the planet who can accurately predict the velocity of the market.
People may get bits and pieces of a prediction correct, but we’re ultimately playing a guessing game. Either way, what can you do to take advantage of the current time on the market clock? Let’s run through some scenarios.
The Market Continues to Rise
Let’s say the market decides to continue along longest expansion of all time.
Prices continue to rise and with that, you’d like to capitalize on the state of the market and sell your home for the largest profit possible. After another year of soaring, the value of your home is $600,000 and you immediately find a buyer desperately in love with the historic aesthetic of your property.
Utilizing a realtor will net a 3% service fee on the sale side coming out to $18,000… Utilizing Rezlist will net a selling service fee of $3,999.
Not only can we help you capitalize on the rising market, we can help you save time and money with our full service approach. And what if the market leans in a different direction?
The Market Takes a Dip
What if San Diego’s rental rate increases fall even lower next month after the current slow? Maybe Phoenix’s young professionals are actually far too bogged down with student loan debt to create a nest egg worthy of home ownership.
Your property begins to lose its value, and you were right on the cusp of listing your home after getting an offer for another position across the country.
Don’t worry about it, we can still capitalize:
Just before the market dipped your home was valued at $600,000. You’ve tried to list it as such, but have only found bites at $550,000. These buyers are happy to take it from you at this price, but you feel a little left out of the profit.
Once again, traditionally, you’d be giving in 3% of the sale price for transaction fees. That’ll be $16,500.
Luckily, you ran with Rezlist, and only paid $3,999 to list and sell your home with no detriment to the full service experience.
At the end of the day, you saved $12,000 in fees that will help tremendously with your relocation after deciding to accept your new position with a breath of fresh air.
With that, we’re here to help you profit when the market is up, and save when the market is down. Next time your uncle takes over the family get together with his market theory, tell him to give us a call, we’d like to save him some money, too.