Research has discovered that the best time to list your home for sale is during the summer and spring season, prior to when the very first school bell rings for the season.
However, the present real estate market is far from being conventional. While it may be true that most home sales activities occur during the spring and summer period, the unceasing deterioration in inventory has shifted the season for home sales to the fall, closing up what had always been a gap between the sweet spots of home selling and buying.
It is necessary to know that home selling and buying season changes with regards to the market. The warmer parts of the country, such as Florida, are more active throughout the year compared to markets in other locations
At A1 Buyers, whenever we are questioned about the right time to put out a home for sale, our answers have always remained the same. The choice of moving on into the next chapter of a man’s life is his decision to make. There are also other factors to consider, apart from the housing market seasonality.
Perhaps, you just got a new job, or you are expecting a baby, or maybe your grown-up kids are about moving out. Irrespective of what your reason may be, always make sure that the choice of selling your home aligns with your long-term goals as well as your current needs.
So, how do I know the right time to sell my home?
Before putting up a “For Sale” sign in front of your house, carefully consider the following five (5) factors, as you decide whether you are selling your home at the right time or not.
Your personal finances are usually a major driving factor behind the sale of your home.
In case you have been residing in your home for a long time, then you may have equity which you can use as down payment on a new house, or to pay off other expenses. In case the home you are putting up for sale is your main residence, and you have resided in it for at least two years during the past six years, then you won’t be held liable to pay capital gains tax on your first $250,000 for single homeowners and $500,000 for married homeowners.
Another serious financial factor to consider is whether you have sufficient funds for all the expenses associated with relocating into a new home. According to the U.S Storage and Moving Association, the normal cost of an intra-state household move is charged at $2,300, while the normal cost of an inter-state household move is charged at $4,300 (with an average distance of about 1,255 miles)
These figures, however, do not cover the cost involved in making repairs to your present home, buying new appliances and furniture, and decorating a new house before moving in. It may be the right time to sell your home if you are certain you have the funds for all these expenses.
On the other hand, if you are facing serious financial challenges, then it could simply mean that now is not the right time to sell your home. For example, in case you are owing much more than what your house is worth, then you should reconsider your choice of selling your home now if you do not want to lose money on the sale.
Instead of rushing into selling your home when you are not financially stable, it is advisable you talk to your lender about changing the terms of your loan, apply for a loan from another lender, or consider applying for a government-sponsored financial assistance program such as HARP. As soon as you have been able to build up more funds and equity, or your home market value has increased to the extent you are certain it can provide you with equity, it may be the right time to have a second thought about selling your home.
In case waiting to relocate is not an option, then think about renting out your home for two or three years in order to cover up the mortgage payment and also build enough equity before listing your home for sale.
Of course, the best scenario is when your mortgage has been paid off completely, and you want to sell so as to fund-up your retirement, cash out, or use the sales proceed in furnishing your new home.
It is difficult to always make plans for life’s toughest challenges. Most times, certain things just arise, and you will be left with no other choice but to sell your house and move out. Below are some of those circumstances that can cause such a decision:
Selling your home on a short timeline could be very stressful, however, there are certain ways to ease the process. In case you are selling your home traditionally, then consider selling the home as it is. This means you will make the sale price of the home a bit lower, in order to cover up for repairs, which are always time-consuming and also very expensive. Or you can consider selling your house to a direct homebuyer like A1 buyer. At A1 buyerS, we take just a single service fee to provide you with a stress-free home selling process without showings, listing, and months of hassle. You are in full control of how and when you want to move out, and you can also choose when you would love to close the deal.
Sometimes your home may no longer suite your lifestyle or needs. Perhaps the number of bedrooms is no longer sufficient for your family, or your pets require a bigger yard, or maybe you need some office space to start up a home-based venture or business.
The decision to list your home for sale and upgrade can be spontaneous. It takes time to consider what you really want before making your final decision. Walk around your home, and take note of the spaces you are using and how they meet up with your needs. Are storerooms overflowing? Do you need an extra bathroom? Is the kitchen not spacious enough?
Some homeowners may conclude differently. While you may want to sell your home for upgrade reasons, other homeowners may want to sell their current home for downsizing reasons such as, the existence of rarely used spaces, regular repairs and maintenance becoming daunting, or to reduce clutter, save money, and also reduce the amount of time normally spent working on the yard.
Apart from personal factors, sometimes it is preferable to sell your home during the peak months, in order to take advantage of greater sale prices. If you have been confused about selling your house, the calendar can guide you.
Nationally, home sales often flourish from February and flourish more in the spring and summer seasons. However, the pattern can vary with regards to your geography. For instance, courtesy of the slight winter weather, home sales within Phoenix stay fairly steady all throughout the year, spiking during the month of March, and again in the month of May. Home sales in colder climate may spike later during summer.
Ensure you carry out proper research and make yourself familiar with what is trending in your market. Realtor.com and NAR have research sections that can help you out with this. Also, contact a seasoned real estate agent if you want to completely understand how seasonal changes affect home sales in your local market. If it is possible, you can defer on selling your home for a few months in order to take full advantage of the favorable conditions in your local market.
Apart from the factors mentioned above, there are other market factors you can consider. One of these is housing inventory for sale in your locale. A low housing inventory could mean the right time to sell, due to the fact that homebuyers might clamor for available properties, and may also be willing to pay an extra dollar for your house.
Another factor to consider is the interest rates that mortgages attract. With higher interest rates, homebuyers will be more motivated to opt for mortgage loans. More homebuyers mean more sales, which can translate into meaning lesser time on the market, or a higher sale price for your home. Also, buyers get motivated when they believe the interest rates on mortgages may increase soon.
Preparing for a home sale
Irrespective of the fact that, you are downsizing, upgrading, relocating, trading up, or just having the urge to move out, there are many things you can do if you want your home to have a higher sale price, below are some tips.
Relocating is a decision capable of changing your life. All things properly considered, the right time to sell your home is the time that is right for you. Once you have taken a step towards this, weigh all your available options, you will definitely feel more confident selling your house when you know you are fully prepared for it.