To quickly describe my 'half unique' situation.. I am the son of a home owner who i seriously contemplating selling her house due to financial stress and some other related factors. She has been paying off the property which she purchased around the $80,000 point, for the past 20 years and after refinancing it multiple times now owes nearlly double that on the loan !
Her idea is to put the property on the market 'soon' and sell for around the 350-400k (estimated on other houses in the region), use this to pay the ~160k loan then use the remaining ~240k (max) to fund a smaller home elsewhere and a 'new start' in her words.
This does sound like a good idea in theory.. I'm just worried about what I hear on the news and what I read on sites similar to this.
Is this a good time to be doing this ? property price wise, market wise etc etc..
any advice appretiated..
Thanks
Why doesn't she sell for 50k less than the other houses in the street? That way it should move quickly.
My 2 cents, it will be an easier sell now than this time next year.
ummester wrote:Why doesn't she sell for 50k less than the other houses in the street? That way it should move quickly.Her plan atm is for a new start.. not a 'quick getaway asap'. Why sell it for 50k less when she could get 50k more and just wait for the best time to sell ? Also, how would she know the 'prices' of the houses in the street to begin with ? (there are none on sale)
ummester wrote:it will be an easier sell now than this time next year.This is more like the kind of information I was seeking, BUT without explaination… WHY ? will it be easier to sell now compared with this time next year ?
Spring is "typically" a good time to sell as there are "usually" more buyers. What area of Adelaide is the house? If you have based your house price estimate from prices advertised in the area (eg on realestate.com) please note that currently I am observing up to 10% difference (less) of price between advertsed and sold. Prices are regularly now selling for under their advertised prices. In a falling market the longer your house is on the market the more of a reduction may apply. However that said some areas are still in very high demand and sold the first week. So I guess you won't know until you try. I also have a mother in law that is planning on doing the same thing, she refinanced for small mortgage / doubled it, now all the kids have moved out of the 6 bedroom house (she lives on her own), so she is hoping to sell by the end of the year and downsize, her house is located in Adelaide in Modbury Heights.
khorask wrote:Her plan atm is for a new start.. not a 'quick getaway asap'. Why sell it for 50k less when she could get 50k more and just wait for the best time to sell ? Also, how would she know the 'prices' of the houses in the street to begin with ? (there are none on sale)Sorry, I confused area with street. You did mention prices in the area.
khorask wrote:This is more like the kind of information I was seeking, BUT without explaination… WHY ? will it be easier to sell now compared with this time next year ?Rising stock, decreasing credit and lower valuations.
Telling you to sell now because prices will be lower next year is like your own property agent using scare tactics to convince you to accept the first [low] offer that comes along. I could just as easily say, why not hang on to the property until conditions improve? Key question to ask yourself is, is it going to hurt more to wait? Do you 'want out' right now?
Easier said than done, but this is key: sell when the news is exceedingly good, and buy when the news is exceedingly bad.
fWord wrote:but this is key: sell when the news is exceedingly good, and buy when the news is exceedingly bad.That I totally agree with fWord.
Late 2009/Early 2010 – what an awsome time to sell. things were on the up and up from 2008. 2007 likewise.
As for buying, I recon the news has to be worse than 2008. Fundamentals are worse but news (and price falls) aren't yet.
I know this is all retrospective and each has to make their own judgement call on wether things will get worse or better next year – no one can know for sure, can they?
I think the OP mentioned they weren't desperate to get out, so that means they have to decide what they think will happen to the market over the time they have to sell. I'd say research what is likely to happen to Australian home lending over the foreseebale future – that could have the biggest impact. Then consider how many homes are likely to be listed and what is likely to happen to IRs. All of these things are still just assuming but at least you can console yourself with an educated assumption.
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