Real estate is a complicated business and timing is crucial, whether you are out to buy or sell. If you are planning to sell your house, choosing the right time can make all the difference. You can reduce your efforts and sell faster if you put up the property in the market at the right time. Even though selling your home is a personal decision and when you want to do it is totally your own choice, there is a need to understand the seasonality of the housing market. Let us list a few factors that you can consider to plan the strategy and calculate the best time to sell.
- Life changes
The decision cannot always be time bound as you may want to sell because you are moving to another city for your career or having a baby. You may need to sell to buy another house that is in a better school district or be near to your ageing parents. A medical condition could be another reason as you may want a house without stairs or near your treatment center.
These reasons are much out of your control and you may need to sell without waiting for an optimal time. Still, having a proper strategy and planning with respect to timing can be a good approach. Have a timeline in mind so that you need not sacrifice in terms of the home value and have enough time to sell before taking the next step.
- Financial factors
The optimal time to sell your home greatly depends on financial factors such as your current financial scenario and the upcoming needs. If you plan to buy a new house in the near future, selling becomes the next feasible decision to gather equity for down payment. Those who are nearing retirement may also need to sell to secure themselves financially.
At the same time, your financial circumstances may also indicate that selling at a specific time may not be the right decision. For instance, it is not advisable if you currently owe more than the value of your home as you may end up losing money on the sale. In such an event, you may consider building your equity by renting the house for a year or two and then reconsider selling it.
- Upgrading or downsizing
Another factor that influences your decision to sell at a specific time is a need to upgrade or downsize depending on the current or future needs. A house may no longer be suitable for you because it does not provide sufficient space for your family or pets. On the other hand, you may want to downsize if your children have grown up and want to move out on their own.
Some people want to sell because they want to buy a home that would double up as a living space and working space. The reasons could be diverse but you will need to sell if you decide that it is the right time to upgrade or downsize.
- Seasonal changes in the real estate market
If you have made up your mind about selling your place, ensure that you do some research to find out the best time to sell. The real estate market experiences seasonal trends, with prices picking up at a certain time of the year and being low during some months. One of the easy ways to increase your home value is to wait till the peak season.
The market tends to pick up during the spring and summer months, which are considered to be the most lucrative for the sellers. On the other hand, winters are a little slow on the selling front. The trends may vary from state to state; so it is best to do some research for your area to decide the best time to sell.
- Demand in your area
A smart seller is the one who makes the move when demand is high. The real estate demand in your area will go up when fewer people are willing to sell and there are more buyers who want to buy property. Understand this “low inventory” rule and pitch your property when buyers have limited options.
Another factor that can make a difference is the market mortgage rate at a specific point of time. Low mortgage rate means that more people will be interested in buying at that time and you can get a good value for your property.
The timing of your selling decision is of great importance as it determines the value you will be able to get. Selling for personal reasons may not really be in your control but the best approach is to be vigilant about the market trends. After all, it is always better to make hay while the sun shines!