Building Wealth • Client's Corner • September 19, 2023

Is It Time To Rescue Your Retirement?

by Darren Upp

Most of my real estate clients have been very happy with the increase they’ve seen in the value of all their investments over the past few years. When the economy is strong, nearly everything is going up in value. Stocks, bonds, real estate, 401k and more just seem to keep climbing and climbing.

Do you consider this good news or bad news?

As of right now, it’s great news right? But we all know what happens when the economy goes back down within it’s normal cycle. Yes, the market will drop again and there will be a major market correction. This is normal and healthy. But if you leave your investments where they are currently and that drops 30% or 40% or even 50%, things can get a little stressful because you immediately lose all of the gains you’ve experienced in the past.

I’ve lived through several of these market and economic cycles and I’ve seen it over and over.

I’m certainly not an investment advisor and I only specialize in real estate but I can certainly tell you what I’ve seen personally since we deal with so many families and the finances they are working with.

Personally, I like taking money out of particular markets when it appears it’s at a peak just to go into a safer and more stable investment. Preservation is key during down-turning markets.

I’ve seen lots of home buyers cash out their 401k to redirect it over to housing. They use it as down payment on real estate which stays MUCH more stable during down-turning markets.

While most people think that they have to pay some kind of big penalty if they cash out their 401k, they find that there’s actually no penalty if it’s used towards a home.

Of course, I’d recommend you check with your financial advisor or professional to get their advice because everyone’s situation is unique. And with what we are seeing from the national economists, it looks like real estate will REMAIN on a slow creep up, even during the looming recession. Their specific words say that real estate will likely NOT see any reduction in value as everything else begins to slow.

Again, check with your advisors and see what they recommend you do with your nest egg. But personally, I’m not going to let it sit where it is much longer. Why lose it?

Sellers • February 21, 2023

When Is The Best Time To Sell???

by Darren Upp

If you’ve ever considered selling your home, you’ve likely procrastinated about it for months and sometimes even years. It’s a big step.

Is now the best time? Will the market change? Where would we move to? These are all questions that likely pop into your head. It can be too much to consider and as we know, the confused mind says “NO!”.

A new study was recently released by Zillow which showed that they did extensive research on the very BEST time to sell a home nationwide. The results are very revealing to say the least…

The researchers found that selling a home before May 15th not only allows it to sell faster, but also sell for a lot more money. As a matter of fact, those homes were sold for one percent more than those sold after May 15th. Coupling that with the fact that they also sell 18 days faster (on average) and this means it’s a far better option to get the home sold and closed prior to that mid-May date. Nationwide, a full 1% more for your home can mean thousands of dollars in additional profit as well as a much quicker sale time.

While this was a national study (rather than local) it certainly shows some facts you will want to consider when looking at a possible move.

One of the most important things noted within their research was marketing time. It reveals that it can take 45 to 90 days to find the right buyer for your home, so you’ll need to allow your agent some marketing time in order to get the property “in contract” and finally closed prior to that magic May 15th date revealed in the study.

Obviously, waiting until April or May to list your home may be too late as there’s little chance it would close by that time.

We’ve always known that price is a function of supply and demand. With so many of your neighbors listing their home for sale during late Spring and once children get out of school for the Summer, it simply drives values down due to the flood of homes available. If you’ve considered selling, be sure you beat the rush!

General Info • September 26, 2022

Is It Time To Rescue Your Retirement?

by Darren Upp

Do you consider this good news or bad news?

As of right now, it’s great news, right? But we all know what happens when the economy goes back down within it’s normal cycle. Yes, the market will drop again and there will be a major market correction. This is normal and healthy. But if you leave your investments where they are currently and that drops 30% or 40% or even 50%, things can get a little stressful because you immediately lose all of the gains you’ve experienced in the past.

I’ve lived through several of these market and economic cycles and I’ve seen it over and over. I’m certainly not an investment advisor and I only specialize in real estate, but I can certainly tell you what I’ve seen personally since we deal with so many families and the finances they are working with.

Personally, I like taking money out of particular markets when it appears it’s at a peak just to go into a safer and more stable investment. Preservation is key during down-turning markets. I’ve seen lots of home buyers cash out their 401k to redirect it over to housing. They use it as down payment on real estate which stays MUCH more stable during down-turning markets.

While most people think that they have to pay some kind of big penalty if they cash out their 401k, they find that there’s actually no penalty if it’s used towards a home. Of course, I’d recommend you check with your financial advisor or professional to get their advice because everyone’s situation is unique. And with what we are seeing from the national economists, it looks like real estate will REMAIN on a slow creep up, even during the looming recession. Their specific words say that real estate will likely NOT see any reduction in value as everything else begins to slow.

Again, check with your advisors and see what they recommend you do with your nest egg. But personally, I’m not going to let it sit where it is much longer. Why lose it?