As U.S. Markets Shift in Favor of Buyers, is NOW the Time to Sell Your Properties?

As U.S. Markets Shift in Favor of Buyers, is NOW the Time to Sell Your Properties?

2 min read
Sterling White

Sterling White is a multifamily investor, specializing in value-add apartments in Indianapolis and other Midwestern markets. With just under a decade of experience in the real estate industry, Sterling was involved with the management of over $10MM in capital, which is deployed across a $18.9MM real estate portfolio made up of multifamily apartments. Through the company he founded, Sonder Investment Group, he owns just under 400 units.

Experience
Sterling is a seasoned real estate investor, philanthropist, speaker, host, mentor, and former world record attemptee, who was born and raised in Indianapolis. He is the author of the renowned book From Zero to 400 Units and the host of a phenomenal podcast, which hit the No. 1 spot on The Real Estate Experience Podcast‘s list of best shows in the investing category.

Living and breathing real estate since 2009, Sterling currently owns multiple businesses related to real estate, including Sterling White Enterprises, Sonder Investment Group, and other investment partnerships. Throughout the span of a decade, he has contributed to helping others become successful in the real estate industry. In addition, he has been directly involved with both buying and selling over 100 single family homes.

Sterling’s primary specialities include sales, marketing, crowdfunding, buy and hold investing, investment properties, and many more.

He was featured on the BiggerPockets Podcast episode #308 and has been contributing content to BiggerPockets since 2014, with over 200 posts on topics ranging from single family investing and apartment investing to mindset and scaling a business online. He has been featured on multiple other podcasts, too.

When he isn’t immersed in the real world, Sterling likes reading motivational books, including Maverick Mindset by Doug Hall, As a Man Thinketh by James Allen, and Sell or Be Sold by Grant Cardone.

As a thrill-seeker with an evident fear of heights, he somehow managed to jump off of a 65-foot cliff into deep water without flinching. (Okay, maybe a little bit…) Sterling is also an avid kale-eating traveller, but nothing is more important to him than family. His unusual habit is bird-watching, which he discovered he truly enjoyed during an Ornithology class from his college days.

Education
Sterling attended the University of Indianapolis.

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Co-founder of the world’s largest real estate brokerage Gary Keller has been calling a shift in the market for some time. Recent data may suggest that shift from a seller’s market to a buyer’s market is already here — at least in some destinations. What does that mean for owners and real estate investors?

Data from The Wall Street Journal and National Association of Realtors shows that U.S. home sales began falling in July 2016. New statistics from RealtyTrac in September 2016 show that the average time to flip a home has extended to a new dramatic high of over 6 months. Additionally, vacant bank-owned properties have risen by 67% in 2016.

Related: How to Survive in All Market Phases (It’s About More Than Just Ensuring Cash Flow)

Many homeowners may need to step up their game to sell faster, though obviously a “buyer’s” market also signals a time for others to step up their investments or hold.

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Is it Time for You to Sell Your Home?

If you really must sell your home in the next few years, have been hoping to move up, or may have a balloon mortgage or adjustable rate mortgage; this is high time to sell in many markets. Rising interest rates and softer sales could make this the best time to exit in the years ahead.

For regular homeowners, that may be a big wake-up call to get it listed or to cut the price on a listing to make sure you secure a sale.

Related: Is a Market Correction Imminent? Here’s Why NOW is the Time to Prepare.

As a real estate investor, you may also want to capitalize on this moment to optimize and restructure your portfolio. Maybe you have four single families you can sell and use those proceeds (via 1031 exchange preferably) as a down payment on a 100-unit multifamily building. Maybe you have held some properties for quite a while or have an aging multifamily and now is the time to liquidate and buy something recently remodeled.

full-disclosure-sellers

When It’s Time to Hold

Don’t sell if your cash flow makes sense and your location still has room for growth. There may be small soft spots in the market, but real estate has proven to keep going up in the long run. Also, if you don’t have plans to reinvest or can’t see opportunities with better yields, then it’s best to simply not sell. Paying Uncle Sam on those capital gains can be a hard pill to swallow. So don’t sell unless you are really facing pressure to in the next few years.

Most investors will want to use this period to bulk up their income property portfolios, taking advantage of low rates and the few destinations that may still be undervalued and overlooked by the masses.

What do YOU think about current market conditions?

Let me know with a comment!