Many sellers are ready to take advantage of the favorable market and realize a significant profit on their investment. Yes, it’s a “seller’s market” but those sellers are now playing in the same market … on the other side of the transaction, as buyers.
If you’re committed to staying in the same place geographically, even if you’re prepared to “scale down”, the best case scenario may be that you buy a smaller home for close to the same amount you just sold yours for. In which case I advise most sellers to stay put. Of course, when you are ready to sell later your home may not fetch the same price. But you probably won’t need to spend as much on your next place either.
It might be time to make a lifestyle change. Perhaps you’re ready to retire and make your second home your primary residence. Or you want to leave the suburbs for a small place in the big city. Or you are ready to rent a condo and leave the maintenance to someone else.
If you are open to relocating, focus on markets that are still under-discovered or ones where inventory is less tight and prices aren’t being driven up by hungry buyers. You can find news articles daily about the “best” places to live and those that are more accommodating to buyers. If you don’t already have a place in mind, best to explore several with short-term rentals before you fly in for a weekend and buy a house.
In any scenario, I suggest you first sit down with your financial planner and accountant to ensure that your next move tracks with your long-term goals and estate planning, and that you are in a favorable position regarding taxes. Once you have a solid plan, have the same conversation with your Realtor. Sure, they’ll be happy to list your house, but they’ll also be able to provide guidance regarding where to go next, including introductions to agents in markets outside their own.
Michael Mosca is a real estate agent with Mott & Chace Sotheby’s International Realty in Narragansett, Rhode Island.
Michael specializes in properties in coastal RI http://www.CoastalRIHome.com and he is a member of Our Trusted Network of Sotheby’s International Realty agents around the U.S. and across the globe http://www.OurTrustedNetwork.com