It can be confusing to decide when it’s the right time to sell your home. Before debating whether to sell, there are several financial and personal factors you should consider.
When is a good time to sell?
Many factors help determine when it’s the best time to sell your home. These include:
- Season – Although many will agree that spring is the best time to sell your home, competition is usually fiercest at this time. Your home needs to be competitively priced to attract potential buyers. Therefore, several experts recommend listing a home in February or March, so that the property hits the market before the competition ramps up. For company relocation, February is one of the biggest months.
- Interest Rates – Low-interest rates attract more potential buyers into the housing market. This in turn can lead to bidding wars, which can drive up home prices, leading to higher profit returns for the seller.
- Economy – The strength of the housing market is directly correlated to the strength of the U.S. economy. In times of economic strength, home values can increase on average 3%-4% a year, making these times an optimal time to sell your home.
- Supply – Short supply creates higher demand. In a low housing market, homes will sell quickly due to low competition, which brings in higher profits for the seller.
- Condition of the Home – Homes that show well sell faster and usually higher. Any defects with appliances, heating, leaks, etc. should be remedied before listing the home. In addition, sprucing up the property (eg.; painting the kitchen, and landscaping the property) would also be beneficial.
- Downsizing – Older homeowners, in particular, will find downsizing beneficial as it can help cut costs (such as lower utility and repair bills) and simplify their lifestyle (less maintenance). In addition, as homeowners age, things like stairs and long walkways/driveways can be dangerous, making smaller spaces a preferable choice.
Some questions to ask to see if downsizing is right for you:
- Do you have unused rooms?
- Is your yard easy to maintain?
- Do you have too much stuff to manage?
- Can you afford to stay in your current home in the future?
Follow the market trends, whether it’s hot or cold, and if the interest rate is high or low. Consider the reasons for selling and see if it’s worth the process or postpone till the market is better.
Wondering if you should sell your home? Let us help you determine the right option for you and help you navigate the process!