Does delusion or pure optimism cause you to make bad decisions sometimes? Check out my thought of the day!
How to buy and sell a home in a recession - A list of questions
Here is a list of questions that you can consider if you are thinking about buying and selling in the next 12-18 months. If you're not thinking about moving, you can ignore this email or read it for entertainment.
Scenario #1 Upsizing with a family and a mortgage a) Given the interest rates have risen since you last were approved for your current mortgage, will the bank provide the additional financing needed to make the jump to a larger home? b) Would you prefer to sell your home and require temporary housing if you can't find the right home in time, or (assuming not all sellers will accept a subject to sale offer) would you prefer to limit your purchasing options in order to ensure you will be able to move seamlessly from one house to the next? c) At what interest rate could you no longer afford to upsize? d) Is it better for you to buy a home for less money in an unstable and receding economy or more money in a growing and stable economy? (is your family income stable or fluctuating?)
Scenario #2
Downsizing with no mortgage
a) Is it better to maximize your sale price/retirement savings in a hot market and compete for your retirement home or is it better to sell in a recession and take your time with proper due diligence to purchase your retirement home?
b) Would you prefer to have additional investable capital from the sale of your family home in a hot economic climate when many products/stocks to invest in are overpriced and inflated or when stock prices are low and prices have reset?
Generic questions:
a) Have you considered the worst possible scenario of this recession (rates, your income, job loss) and determined that your current debt will be manageable throughout? note: It's better to be a home owner who chooses to sell than a forced seller.
b) Have you considered that the coming year or two may likely hold the lowest buy-in prices for real estate that we may see for the remainder of our lifetimes?
c) Would it be better to sell today for a price that feels painful or 6 months from now that feels great compared to other sales but is overall lower than the first price?
d) Would it be better to buy a house you're not crazy about for a great price or overpay for a house that checks every box and comes available rarely? Perhaps the 3rd option of buying a house that checks every box and at an amazing price? Congrats for reading this far, you can choose option 3 :)
And by the way, if I'm not already, I'd love to be your Realtor!
Until next time....
Sincerely, Bronson
Thought for the day - via a tweet
I recently read this tweet from Bill Gurley who is known for being a general partner at Benchmark Venture firm and for being an early investor in Uber and many other unicorn tech start ups. In the recent winter and springtime myself and many of my clients sold short term real estate realizing that the value may have peaked in the short term and we didn't want to hold longterm. I decided to hold onto one of my properties for emotional reasons and realized this last month that I should have sold it in spring. When I read this definition he tweeted along with some prayer to God, it reiterated and confirmed that I was living a great example of the sunk-cost fallacy and unless I wanted to weather the storm I ought to just bite the bullet and sell. Whether its real estate, the NFT you bought last year or the $100,000 EV that will "pay itself off", I needed to be reminded of this and perhaps someone out there does to.
Today's Market Stats with Bronson
Click here to check out the stats page at BronsonJob.com
Don't Keep Me a Secret
Who do you know that is thinking about buying or selling?
If you know I will treat them like royalty, don't hold back, let them know I'd love to work with them! The best way to send a referral is a simple introduction. Life is the most fun when you work with people you like!
