Should I sell?

I know that you are being bombarded with emails, phone calls, texts and letters from Realtors encouraging you to sell.

Our inventory is at an all-time low and this goes for both homes for rent and homes for sale.

Back in the spring of 2004, our market started going crazy. Builders were raising the prices of their phase releases $10,000 at a pop. Buyers were waiving appraisal contingencies and paying tens of thousands of dollars over the list price. In a space of a few short months the prices of homes almost doubled.

Today, buyers are waiving appraisal contingencies and paying tens of thousands over list price. They are getting pretty creative – some are paying their agents commission – this is a first. Other incentives I’ve seen are: pre-agreeing to waive any request for repairs found on the home inspection unless the repair is over $5,000; paying the Seller’s Nevada Transfer Tax fee, allowing free rent-backs after closing…. And more.

What’s a big difference between 2004 and 2021?

Loan products. The real estate crash wasn’t brought on by rapidly increasing prices. It was brought on by the crazy loans that were given. Loans given to people who would never have qualified to buy those homes. Those kinds of loans are not allowed today.

Today there is a shortage of homes and rentals on the market. We all remember our junior high lesson on supply and demand. Low supply = High prices.

Our builders are kicking it into gear all over the valley but it will take one or two years at least to bring enough product on line to supply demand.

So, that brings us back to today. Should you sell? It depends on a lot of factors. Do you have a need for the money? What will you do with the money you get? Can you buy another property to replace it? What are your tax consequences? Is your property out-of-date? Do you have the money to upgrade your home to either get you a whole lot more rent or a whole lot more at the sale?

I’ve never seen rent prices this high!

I’m a fan of hold and keep – rather that is in stock or real estate

If you’re on the fence and you want to know what your property is worth, email me back and I’ll send you the information. Contrary to popular belief, Zillow is not the best source of value!