In a Nutshell: The best time to sell a house is usually in a buyer’s market, leveraging high demand to maximize the sale price, and ensuring profitability even amidst market changes.
KEY TAKEAWAYS
- Best to sell when consumer confidence in real estate is high, signaling a favorable selling environment.
- House selling timing should be flexible, adapting to market conditions and individual investment strategies.
- Emphasizing long-term investment over short-term market trends can lead to consistent profitability.
Best Time to Sell a House
Determining the best time to sell a house is a complex question that transcends simple market predictions.
Kris Krohn, a real estate maverick and best-selling author, offers a seasoned perspective on this critical issue.
From his extensive experience in property investment and market analysis, Krohn’s insights provide a deeper understanding of when and why to sell in the ever-fluctuating real estate market.
The Intersection of Consumer Behavior
Krohn suggests that the optimal time to sell a property is flexible. “If you bought it the right way, then anytime should be the right time,” he explains.
The key lies in understanding the market’s rhythm, mainly how consumer and investor behaviors often counter each other.
Krohn observes, “When consumers eagerly buy real estate, investors typically sell.” This trend indicates that a buyer’s market could be the best time to achieve the highest sale price.
Conversely, savvy investors like Krohn and Warren Buffett actively purchase properties when consumers lose confidence, as seen in the 2007-2010 market downturn.
This counterintuitive strategy allows them to capitalize on market lows and underscores the importance of timing.
The Art of Sustainable Investing
Krohn stresses that relying solely on market highs for selling could be flawed. Instead, he advocates for resilience in investment approaches.
“If the market turns against you, you should be able to continue holding that home, cash flowing it, and continuing to make money,” Krohn advises.
His practice of investing below the median exemplifies this approach, ensuring continuous cash flow even in downturns.
Echoing Warren Buffett’s principle of the margin of risk, Krohn highlights the essence of ‘Buy Low, Sell High.’
He illustrates this with his own experience, where an intelligent purchase allowed him to sell a property profitably regardless of market timing.
Maximizing Return on Investment
Krohn shares a compelling example of his investment strategy in action. He talked about a house purchased in 2005 and sold a decade later, acquired with a partner’s resources and without any direct financial input from Krohn.
Over the years, this property yielded significant returns, demonstrating the power of strategic, long-term investment. “We put in $9,000, but look at what we got out. $65,000! That’s a 720% increase,” Krohn explains.
Leveraging Market Timing and Strategy
Reflecting on the sale of this property, Krohn reveals, “I could’ve sold this house at any time. It’s been a cash cow.”
Favorable market conditions influenced the decision to sell, but the investment’s success was more than just dependent on timing.
This underscores Krohn’s philosophy that with the right approach, real estate can always be profitable, whether buying, holding, or selling.
Navigating the Real Estate Market
Kris Krohn’s insights offer a refreshing perspective on real estate investment. His emphasis on understanding market dynamics and strategic investment practices provides a roadmap for novice and experienced investors.
Krohn concludes, “When you do real estate the right way, it can always be a great time to buy, hold, or sell.”
In the ever-changing world of real estate, knowing the best time to sell a house is less about timing the market perfectly and more about strategic, informed decisions. Krohn’s expertise serves as a guiding light for those navigating this complex terrain.
