Need to sell your home and feeling the pain of it potentially not selling for more than what you paid?
You’re not alone. The Bay Area real estate market during the pandemic was nothing short of crazy: Interest rates were still relatively low. Buyers were out in droves with FOMO, offering way over asking. The economy seemed untouchable.
In the long run home prices in East Bay cities such as Berkeley, Alameda and Oakland have appreciated over time. But if you bought in recent years and need to sell unexpectedly, maybe due to a divorce or being forced to return to an office that’s not anywhere near where you bought, you might be facing a perfect storm of challenge.
In the late 2024 market, there are generally fewer buyers and those that are out home shopping are offering less and making offers that often don’t quite meet expectations of home owners hoping to sell at a break even price or maybe even a profit.
Losing on an investment is never a great feeling.
I’m not just speaking as a REALTOR® but as a home owner who personally has sold in a downmarket, when I wanted to just be done with my house. The way I looked at it was that the downpayment that had been invested in my house was money I probably would have lost on some bad stocks. There is always a silver lining when things don’t happen the way we plan, at least in my experience.
Many homeowners think “If I can’t break even or make a profit, I’ll just rent my home out until the market gets better.” If that’s your thought, please do yourself a favor and be sure to get to know your city’s rental laws before you do so.
For now, let’s dive into how you can make the best of this situation by re-framing the negative feeling of losing money on your home investment.
Embrace the Chance to Move On
Selling at a loss might just be your ticket to a fresh start. Whether you’re moving for a new job or just craving a change of scenery, selling your current place can free you up to explore new areas and new investments.
Selling your home, even if it’s not for a profit, can give you the cash to try out other investment options. Think about diversifying your portfolio with stocks, bonds, crypto, or other assets that match your financial goals. This way, you’re not putting all your eggs in one real estate basket and can potentially grow your wealth in other ways.
Especially if you’ve been ordered to work from the office, you might choose to rent in your new location. Renting will give you the flexibility to live where you want while you keep an eye on the market. Plus, it buys you some time to save up, explore different neighborhoods, and plan your next steps (maybe a new job???) without the pressure of owning a home.
Some former home owners decide to invest in a vacation rental in a spot that you love. Having done this in Maine while I live in California, I’m happy to share ideas for vacation rental investments.
But first: Are you sure your home was marketed at its best?
Before you throw in the towel on your home sale, have an honest look at what you have done so far to sell it.
- Did you make recommended fixes and updates that would appeal to the most buyers?
- Did you invest in staging to make the house feel like a home to potential buyers?
- Did you invest in reports from reputable inspection companies?
- Did you market the property far and wide, and was it available for potential buyers to easily see? (When owners are still living in a house they are less easy to see and have a higher chance of turning off buyers who have a harder time picturing themselves in the home.)
- Did your marketing include floor plans, 3D walkthroughs, videos, and all the tools to enable buyers to “see” the house without being there?
If you answered “no” to any of these, or did not get feedback from agents and their clients, it might be worth re-visiting your home sale strategy adn giving it another go before “giving up.”
Selling at a loss may be the reality…and its never fun
While the current market might not reflect what you paid for your home, if you have to sell, it’s important to make sure you’re doing all you can to net the most.
In the end, selling your home at a loss might not have been in your original plan, but it can lead to new beginnings and financial growth.
Mid-winter is the time to make sure your property will be in shape to attract offers you can’t refuse.
For now, you can privately test your “make me sell” price among a vast network of Compass agents and their clients, as a Private Exclusive listing. Many homeowners who try it are surprised and delighted to find the right buyer was waiting in the wings.
Early 2025 once the new administration is underway and the traditional “Spring home buying market” gets started could be the right time. If you’re thinking about selling or just want to explore your options, reach out to strategize how you can navigate this journey and start charting a path to future success.
