The Myth of Timing The Market
As a home seller, it’s easy to fantasize about timing the market perfectly—and even easier to lament when the “peak” of the market appears to pass you by.
Perhaps you believe that a year ago, you could have gotten a 10% premium selling your home—easily equating to hundreds of thousands of dollars in hot markets! Now, you’re forced to take that “loss” as you sell your home.
But viewing the situation purely as a seller is usually misleading. After all, the vast majority of sellers almost immediately become buyers. Unless they leave the area, dramatically downsize, or wait a long period, the market conditions working against them as a seller will now be working for them as a buyer. That means more options, more leverage, and a better deal than a year before. All told, it’s likely that their perceived “loss” or “gain” due to market timing was a wash.
Very few analysts—perhaps none—can reliably predict the market. But anyone who is both buying and selling can benefit from market conditions. If you are lucky, you may get a slight premium, but what matters far more is equity, built up over years. This is where homeowners will almost always earn the majority of their value. Is that what matters?
So keep perspective—in the world of real estate, what seems like today’s loss may well be tomorrow’s gain. Play the long game, and you vastly improve your odds of finding fortune in the marketplace.