WSJ’s Julia Carpenter has a good piece with advice for home sellers today and this quote from Freddie Mac deputy chief economist Len Kiefer gets to the point.
It’s easier to be induced to sell by endless headlines of record high prices and buyer bidding wars.
But remember 2 things:
1. If you’re buying again after you sell, you’re subject to that same pressure all other buyers feel right now. So do your homework on your target purchase market before you sell.
2. Do the net profit math with a lender and a tax advisor in addition to your realtor. The realtors are great at selling and helping you buy, but they do tend toward simpler math. Len’s quote here is a good reminder there’s quite a lot of factors that go into determining exactly how much cash you’ll walk away with. Lenders and tax pros can help you get preside before any selling plans move forward.
If you purchase a home, there could be pretty substantial costs: transaction fees, taxes, closing costs, if you get a mortgage. In general, the shorter your time in the home, the less time you have to make up for those costs.