Homeowners should understand various seasonal trends affecting the real estate market to determine the best time to sell their homes. Even though the decision to close the sale is often a personal choice, you should consider other factors, such as the current condition of your house, your financial status, if you intend to make improvements, and whether the current local real estate market conditions are favorable.
Seasonality certainly affects the demand and supply of properties in the real estate market, with spring generally being the best time to sell a house. However, some specific factors can make it impossible to wait until spring to list your home. Whether you are selling through real estate agents or for cash to Problem Property Pals, below are factors that influence your decision to sell your home.
A 2018 Census Bureau data showed that more than 16% of homeowners moved from their homes to upgrade to new and better homes. However, selling your house might become unavoidable for several reasons. For instance, the same census report found that the top reasons why people sold their properties include:
- To upgrade to better homes
- To start or grow their family in their household
- Family reasons, such as caring for their old parents
- Relocating due to job transfers or for a new job
- To look for affordable housing
Retirement, family milestones, and work-related changes also make it urgent to move. On such occasions, you might be forced to sell your home during low seasons because waiting for spring or a high season may lead to unfavorable consequences.
Seasonal trends aside, many other market forces can affect your decision to sell your home. For instance, “buyer’s market” or “seller’s market” are common terms in real estate that come into play depending on whether buying or selling is competitive at the moment. You should understand the market to know if the local market is working in your favor.
A good place to begin analyzing the market is to find out how quick property prices appreciate in your neighborhood. Compare the prices with where you intend to buy your new house. You should also find out if homes sell quickly.
The cost of home improvements, unexpected concessions, agent fees, and other charges can quickly increase the total cost of selling your home. Recent Bankrate data show that most homeowners don’t have enough equity in their properties to offset the closing, moving, and buying costs until after they live in the house for five years.
It is best to compile all these costs to know how much you’ll need to close the sale. A home sale calculator can help you with this. Similarly, work on increasing the equity in your property, mostly by paying off your mortgage early.
Selling your property in spring is probably beneficial. You will get the best value for your property and close the sale fast. Unfortunately, not all homeowners have the chance of timing their property sale. Don’t hesitate to list your home if you are faced with either of the above-mentioned issues.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.