A friend tells me to always go counter to market trends. Right now the conventional wisdom is it is not a good time to sell. So I thought why not find some good reasons to sell, and there are. I will admit the prices have come down a little and the market is slow, but her are some good reasons to sell:
1. In November interest rates hit a two year low (they have crept up a bit since then). When interest rates are low buyers have more buying power and are given an incentive to purchase.
2. There are fewer homes on the market now than last summer. Right now there are about 33% fewer houses on the market in Antioch than there was over the summer. Prior to the annual season slow down sales had began to pick up over the summer and I think the spring may show a similar increase.
3. If you want to move up this may be the best time to sell and do so. If you sell low you will probably buy low. In general you will save more money on the purchase of the bigger house than you might "loose" on the sale of the smaller house. Buying at a lower price will also provide a lower tax base for property taxes
4. If you want to sell a income property and do a 1031 exchange you obtain all the benefits noted in # 3. But if you want to take the money you will have to pay capital gains taxes. In this market there is a need for creative financing. You may be able to sell the property and carry a portion of the loan. This can provide a method of deferring taxes and possibly saving some money. If you are providing the financing you are in a better position to negotiate price. Please check with your account as to the tax consequences and potential advantages.
If you can think of other good reasons to sell now let me know.