Minnesota Real Estate Investors Association, Inc.

25% of all listing had a price reduction last month and inventory levels are rising. We are still in a sellers’ market, but we are transitioning into a buyers’ market.  When that happens, sellers buyers become picking and stubborn sellers slowly become more receptive.  The first phase of this transition is for sellers to drop their asking prices, and that is starting to happen. 

The next phase, if interest rates remain high, will shock the sellers and if they have to sell, they will drastically drop their price to get a sale and that has a snowball affect on prices.  The only thing that can help the sellers now is for inventory levels to remain low and interest rates to drop a little.

The simple answer is yes.  The correct answer is a little more complicated than a simple yes or no.  There are many factors to take into consideration and there are pros and cons to selling at any time.

Here are the top 3 things you need to consider before answering that question for yourself.

1. Do I/we need to sell right now?
2. Do I/we need to buy another house when I/we sell?
3. Why do I/we need to sell?

1) Do you really need to sell right now or are you just thinking about selling because of the high market prices?  There are many reasons to sell, but high market prices is probably the worst reason unless you are an investor.

2) If you need to purchase another house in order to sell, then you will have a hard time in a strong buyer’s market finding a replacement home.  In this case it would be best to find a new home first, then sell your existing home.  The problem is if you sell your current place, you will probably have to overbid on a property to get one under contract to close on your time frame.

3) Why do you need to sell right now? If you have a reason to sell then you will be able to make logical decisions because you have a clear reason.  If you just want to sell to see what the market will bring or to access cash from the property, then you might make some bad decisions because you don’t have a clear reason why.

If you have a clear reason why you have to sell, then give us a call because we have flexible options to might make the process a much more smother transition and most people tell us that it reduces their stress level knowing that they have a buyer that can work with them on their time schedule.