Is It a Good Time to Buy or Sell a Home in Westchester?
By Bill Primavera
The Home Guru
As published in The Examiner
Besides having a dual career as a reporter and a realtor, I am also a homeowner just like you. For the past year and a half and, in particular, the past few months, I have wallowed with concern about my life’s biggest investment, my home.
How much value has it lost during the market downturn? How would it fare if offered for sale today? As it happens, I want to sell my home which my wife and I, as empty nesters, find too big for us now, but is it the right time? And, is it the right time to buy a smaller home?
So you see, professionals in the real estate industry have the same questions that you have, and adding to our dilemma, we are mentally conditioned to be sales-oriented in order to be successful. How could I possibly advise my clients honestly and professionally if I don’t put myself in their situation and examine market conditions from both sides of the fence, as a realtor, yes, but primarily as a homeowner myself.
I’ve thought long and hard about this dilemma. For buyer clients, it’s a no-brainer about making the big step right now: mortgage rates are at historic lows while there are bargains out there to be had, sometimes through the misfortune of others who have lost their homes to foreclosure.
If a buyer has a good credit rating and the resources to buy now, I would advise them not to hesitate. The inventory in Westchester stands strong and the prices have been adjusted to reflect market conditions, with most sellers willing to accept lower offers.
Sellers on the other hand are taking a more considered evaluation about the process of listing their homes. Some homeowners who want to sell, even need to sell their homes, can be intimidated by such daunting real estate news crowding out any positive perspective.
Some financial pundits believe that homeowners should not sell now if they can hold on. For some situations that might be good advice, but as I prospect for listings, I talk to many people, and find situations where to wait could be a mistake. Here are the facts and issues I ask homeowners to consider before making a decision.
First, we are all a bit luckier to own homes in Westchester. While the number of units sold has dropped by a significant percentage between 2007 and 2088, the market here has fared much better than in other parts of the country in terms of price stability, with inventory remaining steady. In Westchester, from the third quarter of 2007 to the same time in 2008, prices have dropped only 6 percent, compared with the national average of 12 percent.
The National Association of Realtors is predicting a modest upturn by mid-2009 in the market, and prospective sellers may want to catch the wave. Another factor to weigh is that homes have always sold, even in the 1981 market where interest rates soared to 18.5 percent.
When making a decision whether to sell, we all have to be in touch with our hearts as well as our heads. The important question I ask potential sellers is, why do you want to make a move? The reason can be an urgent one if the homeowner can no longer afford mortgage payments because of a job loss. Or, it may be necessary to sell in order to accept a job in another state.
An older couple who has trouble maintaining a larger home may be willing now to accept a lower price to move to a smaller retirement home or condo, which also will be lower in price. Especially if that couple has owned a home over a long period, they must compare what the current market will net them, compared to the original purchase price.
A downturn in the market happens to be a great time for upsizing. A young couple who has a growing family can use this period to trade up to a larger house. True, they may get less money right now on the sale of their smaller home, but this will be compensated by the greater savings on the purchase of a larger home.
Every house has a story, they say, and every decision whether to sell has its own story too. As a realtor, I can only recommend to clients that which I would do if I were in their shoes. In my own shoes and situation, I’ve decided that I’m going to put my house on the market in the early spring. In future columns, presented intermittently among other themes of this section, I’ll take you along on my personal journey of selling and buying, from staging my home for sale to finding my perfect, new home. Join me along the way.
Bill Primavera is a Westchester, NY-based realtor ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) and marketing practitioner ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) who can be reached for questions or comment directly at 914-522-2076.
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