What Stage of the Real Estate Journey Are You In?

Your Personal Situation Matters More Than the Headlines

Today’s real estate question is: what stage of the real estate journey are you in?

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When I talk with sellers, the first thing they usually ask me is, “How is the market?” When I talk with buyers, they ask, “When is the best time to buy?” And if you’re selling and buying at the same time, you’re probably thinking about both of those questions a lot.

Those are fair questions, and I’m always happy to talk about them. But in my experience, there’s a more important question to start with: what stage of the real estate journey are you in, and what state are you in right now? Your own stage and situation usually matter more than whatever the national news is saying this week.

The stages I see

Here is how I think about the real estate journey. Not everyone goes through every stage, and not everyone goes in the same order, but this is the general path I see with the people I work with.

1. Saving. This is when you’re saving up for a down payment. Some people stay in this stage for a long time, and some never leave it. The “forever renter” does exist, and that’s okay.

2. Hunting. This is when you’re actively looking for a home. In my experience, this often takes about a year, sometimes two. The last five years have been tough for buyers, and I’ve worked with people who tried for two years. I even had one unusual case where someone was looking for 15 years.

3. First homeowner. You bought your first home.

4. Second or move-up homeowner. Maybe your family grew and you needed a bigger home. You either sold your first home or kept it as an investment and moved up.

5. Investing. This could be someone who kept their first home and bought a second one, or someone who moved up, kept saving, and is now buying investment property.

6. Collecting. This is when you’re collecting income from your investments. Often this is someone who is retired or living on residual income.

Your personal “state”

Along with the stage, I also think about what state you’re in personally. This is where the timing question really gets answered.

Transitional. You’ve just taken a new job or moved to a new city. For example, someone might come to Oregon for a job at Intel, or someone might be worried about a possible layoff that could send them to another state. In my opinion, this may not be the best time to buy, and in my experience a brand-new home can be a riskier buy right after you move here. I usually think it’s better to rent for about a year and get to know the city and the neighborhoods first. Someone new to the area may not yet know whether Bethany or Beaverton is the right fit for their daily life, and a year of living here helps a lot with that.

Offense. You’re in acquiring mode. You’re buying, investing, and growing.

Defense. You’re protecting what you’ve already built. This is a good time to talk with a financial advisor. You might be weighing cash flow against appreciation, looking at a 1031 exchange, or even thinking about selling some property for liquidity. Real estate isn’t as quick to sell as some other assets, but if it’s priced well, it can sell in a matter of months.

Neutral. You’re not buying and you’re not defending. You’re simply enjoying your home and the equity you’ve built. A lot of first and second homeowners are in this state, and that’s perfectly fine.

What this means if you’re thinking about selling

When sellers ask me when a good time to sell is, my honest answer is that it depends on your personal situation more than the market.

If you’re in the investing stage, selling may not be the best move. It might make more sense to look at a 1031 exchange with a tax advisor instead. If you’re in the collecting stage or retired, the question is often whether you’d rather have a lump sum or monthly income. Those are very different goals, and they lead to different decisions.

And sometimes you simply need to sell. Maybe you’re moving out of state, you’re ready to downsize, or the house is too small or too big for your life now. If that’s the case, then that’s your time to sell.

I’d also gently suggest not relying too much on national headlines, like a story saying homes have “depreciated 5%.” Real estate is a micro market. What’s happening in Bethany or Beaverton can be quite different from a national number. The price you set and how well you prepare the home matter a great deal, and that’s where working with a professional really helps.

Summary

So before asking how the market is or when the best time to buy is, I’d encourage you to ask yourself what stage of the real estate journey you’re in: saving, hunting, first homeowner, move-up homeowner, investing, or collecting. Then think about your state: transitional, offense, defense, or neutral. Once you know those two things, the timing question usually becomes a lot clearer.

If you have questions about buying or selling in the Portland area, please feel free to call or text me at 503-515-4499. If you’re thinking about selling, you can also start here: https://shawn-realty.com/sellers/

Thank you for reading.

Shawn Yu
Shawn Realty