If you’re a Baby Boomer who’s considered selling your house or business, now is the time to do it. That’s because the important supply and demand dynamic is not in your favor – especially if you are selling a McMansion or business. I have been saying this for years. The future holds an ominous economic dynamic. A September Market Watch article quoted the venerable Jeffrey Gundlach of DoubleLine Funds on the outlook for the housing market:

“He doesn’t see another 2008-style crisis there, noting that the quality of underwriting has changed since then, though he thinks the market will remain depressed as baby boomers try to sell the McMansions that millennials don’t like and Gen Z hates.”

Full disclosure, making decisions purely based on economics is a bit bass-ackwards! At Bartley Financial we always start with the vision, what you want for the future and then put the numbers behind it. With that typed, knowing the supply and demand curve for your house or business can start to get the juices flowing. The plan that you have held near and dear for years may change, in a good way! Keep reading…

Why You Should Sell Your Home Now

That future is here and now. We have seen a couple of clients list their homes for over a million dollars only to see them sell for less than a million. As Jeffrey Gundlach noted, higher priced homes, “McMansions” are tougher to sell. The demand has already started to wane.

Obviously life is happening day to day, and selling a house cannot be perfectly timed. My advice is to assess your situation and the marketability of your house NOW. I would engage a few realtors to provide you guidance on the value of your house, and more importantly the market. A realtor can provide you key economic variables to help you with your decision. For example, the number of days a house of your value has been on the market. Have them provide a comparison for number of days on the market to prior years and to houses of higher and lower value. This is invaluable information for making your decision. If you need help deciphering this information, please don’t hesitate to contact us. We are happy to give you a few pointers. 

Why You Should Sell Your Business Now

Business owners: I have the same WARNING. The supply will outpace demand and lower prices. (Like any commodity, when there are a lot more sellers than buyers, buyers can negotiate the price in their favor.) 

I have been advising clients of this for years. If you are thinking of selling your business, please heed this warning. It doesn’t mean that you have to sell today, but be aware of the demographic shift. Currently there are a lot of buyers and not as many sellers. Sellers can get a premium price. In addition, interest rates are low, which obviously helps the buyer fund the purchase. As more and more baby boomers want out and sell their businesses, they are going to flood the market. 

The financial reward of selling a business is not the only consideration. Are you ready to retire, emotionally (a very important consideration –it is a process) and financially? Will you have enough money to sustain your lifestyle? Please don’t hesitate to call me. This is exactly what we do. What I am passionate about. Business ownership and my admiration for business owners is in my blood. I grew up in a family business. A famous restaurant in Harvard Square, Mr. Bartley’s.

I will follow up with a few blog posts about positioning your business for sale. For example, will you sell the business to an employee/employees, or do you have to attract the next generation of owner/owners. This does not happen overnight. You have to be planning this years or a decade in advance. Similar to building your business, the exit takes a great deal of work and planning. Certain industries have ready-made buyers–competitors, suppliers, etc. Start to groom those relationships. 

In later posts, I will put my CPA hat on to discuss taxation. As you can imagine, it’s a VERY big piece of the planning/negotiation with the buyer.

I also plan to provide insights from sellers on the emotional roller coaster of selling your “baby.”

Stay tuned…

What Next?

Please don’t hesitate to contact me/us with any questions. We are happy to help (and you don’t have to worry about becoming a client). We can direct you to the proper resources. 

At Bartley Financial, we care about way more than your finances. We care about the life you’re trying to live; finances are just a piece of that. Call us anytime if you need fresh ideas for your finances or help in achieving your goals. We’re happy to help!