If you are a property owner, you can either sell your real estate in 2022 or not.

As a smart real estate owner, don’t let apathy and a wait-and-see attitude leave you with a dissatisfying “If only I’d…” outcome.

Owning real estate means you are a real estate manager who should regularly evaluate the real estate market. This involves periodically, or at least annually, making a management decision whether to cash-in your investment—sell—or to hold your asset through another market—not sell—for reasons that matter to you.

Firm decisions are the way to avoid “If only I’d…” second guesses down the road:

• • • • Is apathy or inertia going to keep you in that property, waiting until life or someone else dictates it’s time to sell? Or…

• Will your 2022 “sell or not” choice be based on how you value the ownership of this property and on the many personal and investment criteria you have for owning and selling?

At this point, what is the right 2022 “sell or not” decision to ensure you avoid “If only I’d…” regrets and missed opportunities?

The more thoroughly you consider and plan for the issues involved in selling and in not selling, the more likely your decision will be an excellent one, even in hindsight!

• • Your decision to sell may be based on interest rates beginning to rise which, in turn, may lower buyer demand and, therefore, real estate values. Cashing in while this hot market continues makes sense for many sellers.

• Your decision not to sell may be based on concerns that you cannot afford what you want to buy next or even find it while inventories remain low. Many sellers want to take some money out of their sale and purchase a less expensive property. At the same time, these property owners often do not want to move out of their preferred neighborhood; however, the current choices and inventories may be very low forcing prices so high there is little for these sellers to choose from.

When deciding whether to put your property on the market or not, there is much to consider as a seller. Here’s FOUR examples of how change continues in surprising ways...

#1. If your real estate needs a lot of work…

Is the burden of that work and your accumulated “personal clutter” causing apathy to set in? If your property is in a sought-after location or price range, the “hot” market may bring you a good price even if your home is not in mint condition. When neighborhood inventory is very low and/or renovators are the most attractive buyers for your home, property condition may not be a significant value factor.

Check with your real estate professional to determine how valuable your location and your property are. In some areas, even if there are multiple offers, a property may not sell over list price. Discuss the multiple-offer and over-list-price sales of comparable properties in your location, so you have a factual view of the current market and where your real estate fits in.

Ask for an estimate of staging costs and what realistic sale price specific improvements could generate. Then, compare this information with the “do nothing, spend nothing” sales potential and decide whether a partial or whole-hearted spruce-up is worth it to you.

#2. If you want to move to a less popular and, therefore, cheaper area… 

You may be able to sell your hot urban property and pocket a significant chunk of money for the future:

• Buy the lesser property before selling since many previously-low-value areas are now attracting frustrated urban buyers who are driving up prices, even significant distances from the city.

• If you’re buying a fixer-upper, before you make an offer, arrange a few reliable renovation quotes from local contractors to be sure this cheaper home won’t end up being as pricey as better properties. Inflation, migrating urban buyers, supply chain holdups, and skilled labor shortages are quickly raising prices for land and construction even in once-cheaper markets.

#3. If you really want to stay and your property has development potential…

Explore development potential with reputable, highly-recommended builders who have a proven track record and who will do your development project justice. For example:

• The owner of one-half of an older, two-storey semi-detached (or duplex, as they are also known) was approached by the new owner of the semi-detached unit on the other side of their common wall. The new owner, a builder, wanted to develop both of the two semi-detached homes at the same time. The resulting two high-quality, three-storey units represent dramatic increases in value and standard of living for both owners.

• Another contractor partnered with owners to develop their old detached one-storey on a large lot in a great area into two semi-detached two-storey luxury homes. Each partner retained ownership of their side, to live in or sell as they wished. Both came out way ahead financially.

This type of partnered development may take time to set up. Ensuring you have a solid agreement before demolition begins is essential. Especially if this is your first construction venture, as well as interviewing builders, invest time talking to property owners who DIY-renovated and those who partnered with a contractor. This can all end in disaster without significant forethought and commitment, but with planning, partnered development is very doable.

#4. If you’ve tried owning a house and find it’s too much work…

You may be ready to sell and stay out of the housing market, at least for a while. This “had enough” attitude leads some property owners into owning or renting a condominium and others into the rental market. You may discover the same inflated prices and low inventory with condominiums and rentals in your preferred location, so find what you want before you sell.

• If you want to move into a condominium complex at a purchase or rental price that leaves some of your home-sale revenue free to spend, do your homework. Condominiums involve “living by committee” and do not absolve you from paying for home maintenance, just from doing it yourself. Monthly fees can be significant.

 Talk to real estate professionals with extensive condominium experience and quiz your condo-living friends. Learn from their first-hand experience of the advantages and disadvantages of this lifestyle and financial commitment.

Long-time real estate owners can take homeownership for granted and end up with “If only I’d… regrets:

• Years may go by without sellers taking a close look at the value of their specific property, especially if they are not continually keeping it up to date. They can take value appreciation for granted and miss out on a “hot” market because they assume the high value will last forever.

• After sellers cash-in and move out of a great neighborhood or city to the country, they can be shocked to learn preferred neighborhoods and urban real estate appreciate more quickly than rural areas. Then, they can’t afford to move back!

Are you satisfied being a seller whining about your “If only I’d…” real estate regrets and missed opportunities?

Or, are you intent on annually, fully-assessing your “sell or not” options to decide how you will manage your real estate and why on an ongoing basis?