Our real estate agents have heard from lots of homeowners on the fence about selling their home. They want to benefit from the historic "seller's market" causing prices in many areas to skyrocket, but they have real concerns about entering that same market as a buyer.

But now, market conditions show signs of changing. We may be reaching the end of this unprecedented seller's market. Gradual increases in interest rates will tighten credit, driving more potential buyers onto the sidelines. That means fewer qualified bidders and less of those lucrative bidding wars.

Bakersfield homes for sale are still in demand, and more sellers are saying: "I'm in."

It is not too late for homeowners to make their move—but it's a wise idea for them to have a plan for the future. Rather than jump right back in as a buyer, many sellers have concluded they would rather rent while they wait for the next market realignment. And they just might have the right idea.

How do you know if renting until you can buy is right for you?

Renting before you buy could be right for you under any of these circumstances:

• You Want to "Test Drive" a Neighborhood (or Even a State!) Before You Commit
  Do you have a bigger move in mind, but you're not quite sure if it's what you really want? Sometimes, the best way to understand a place is to spend time there. Renters generally have an easier time with long-distance moves—to a different city or even a different state—because of the quick turnaround on rental applications. And what you learn will help you make an informed buying decision later.
  
  
• You Want Flexibility to Make Your Move at Any Time
  Even though renters usually have a lease term of six months or a year, many states give them wide latitude to terminate that agreement before the expected date. Likewise, landlords generally can't change the rent or other monthly fees except when the lease is being renegotiated. This means you have the power to make your move in the market very quickly if you have specific properties in mind.
  
  
• Your Ultimate Move Is Coming Up Soon
  By selling your home now, you lose access to the equity and the opportunity to build wealth over time. However, you won't miss out on much appreciation if you plan to buy relatively soon—say, within 18 months to two years. If you just need a little bit more time to line up the move of your dreams, then renting will minimize the commitments you need to make between now and then.
  
  
• Your Future Plans Remain Unknown
  What if your time horizon is a little bit less certain? If you need the freedom to adapt to whatever the future might hold, you probably want to be renting. Although renting is an adjustment, it means you won't have to worry about home repair and maintenance. You can keep an eye on the market as it evolves and focus your attention on deciding what you really want.
  
  
• You Plan to Pay Cash in the Long Run
  If you plan to pay cash on your next property, but need to work on your financials in the meantime, renting is the perfect fit. Rent often isn't cheap, but you can optimize your location and amenities to help you reach the budget that puts your long-term goal within reach. Cash buyers aren't affected by interest rates, so waiting is less likely to cause issues.

Contact us at Watson Realty for personalized advice about your real estate goals.