Sell Now or Later?

With the US’s subprime issue not resolved, the Lehman Brothers fiasco, the US super huge bailout and news that our local private property prices have started to dip… what should we do then?

Ideally you want to sell high and buy low, but unless you are an investor, this is not always practical. However it does help to be aware of the economy because changes within local and international markets can affect property prices and the cost of living in general. For example, when the economy is doing well and interest rates are low, demand for property is generally high and this in turn pushes prices up. By the same token, when inflation is low, investors may be more attracted to the stock market that could also lower the demand in the property market. Industry successes and failures can also have a knock-on effect - the closure or retrenchment of the banks and staff could mean the loss of jobs and hence a dive in house prices.

As the sale of your property is likely to be the biggest transaction you may ever make, don’t sell in haste! If you feel under pressure to make a sale on your property, it is far more likely you will accept a price lower than the true value of your home. Do your homework and find out what similar houses in your area have sold for in recent months. It can be tempting to rush the sale of your property because you have found the house of your dreams, but selling on a whim or without knowing what’s involved could lose you thousands in your asking price or even give you headaches with your newly purchased property if you have not taken the time to check everything out.

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