A couple of years back, CPA and author Stacy Johnson published a sort of personal confessional under the attention-getting title, “Should I Sell My House While Prices are High?” Even if they have no other compelling reason to want to sell, that’s a question that may have crossed the minds of St. Cloud homeowners who recall the rollercoaster housing markets of previous decades. Mightn’t the stock market’s “buy low, sell high” dictum be relevant today?

Johnson’s subject matter is finance rather than real estate—and it was a financial brainstorm he had in 2008. He had bought his Florida house for $400,000 in 2001, but seven years later, its value “was north of a million bucks.” His idea was to sell it for a hefty profit then rent a temporary residence until “the market inevitably sells off.”

The confessional aspect of the article is twofold. First, he didn’t do it. The market fell, and since he hadn’t sold at the peak, he lost his theoretical paper profit. He hadn’t acted because he’d reasoned that the market couldn’t possibly fall enough for the idea to be worthwhile (he was wrong about that). Additionally, the hassle of selling and then trying to find an equally suitable rental was off-putting.

Local readers might assume that the point of the article is to encourage selling their St. Cloud homes now—but it’s not. Johnson acknowledges that similar strategies frequently fail because they call for success in market timing—very risky business in any kind of market. And, as fate would have it, his property eventually became worth even more than it had been in 2008—so the paper profit wasn’t really lost at all.

Meantime, Johnson discovered a less risky alternative strategy.

At the low point of the housing crash—after a sustained period of kicking himself for losing all that paper profit—he recovered enough to take another tack. He and a friend bought a fixer-upper house in the neighborhood. They rented it profitably for a couple of years, then sold it for a considerably elevated sum.

For local readers troubled by the original question yet not about to sell their own perfectly comfortable St. Cloud homes, that history is thought-provoking. Taking big risks could be profitable but might also boomerang—yet doing nothing foregoes financial possibilities altogether. Some middle course may be worth considering. Short-term and long-term, whenever St. Cloud real estate matters could use a professional’s assistance, I hope you’ll call me!

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

Sartell 320-259-4554

Little Falls 320-259-4554

Minneapolis 612-355-1260

Hutchinson 320-455-9127

Litchfield 320-298-1140

Premier Real Estate specializes MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!