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When
should I sell my home?
Your answer to this question might be right now! If you have
taken a job in another city or made an offer on a new home, or
had an addition to your family, selling your home fast
might be the most important goal you have. Most people, however,
have some flexibility when they sell their home. Let us take a
closer look at the most important factors that can go into this
decision.
How quickly must you sell?
If you have decided that now is the best time for you to sell
your home, then, you will probably want to complete the process
as soon as possible, but will also want to sell your home at the
highest price possible. In a "sellers market", where many buyers
are competing for relatively few homes, speed and top price can
go hand in hand.
However in a "buyers market", when purchasers can take their
time to choose among several properties, you may discover there
is a trade-off between speed and price. Discuss your specific
requirements with a Realtor®, who can help you decide upon an
asking price that will also help you meet your timing
requirements.
Cycles in the market place - what do they mean?
In real estate it is important to know that over the long term,
residential real estate
is one of the best investments you can make, while providing you
and your family with shelter. There are cycles in the market
that may affect your decision regarding when to sell. These
cycles can create a shortage of homes, which will push up the
prices, or a surplus which can result in a slowdown of rising
prices.
What drives these cycles - the overall economy is most obvious.
In periods of economic growth when employment is strong and
people have confidence about their futures demand for housing
grows and is high. When, however, there is a slow down in the
economy and unemployment is high, - more homes will come on the
market, and buyers will typically wait for times to improve.
Keep in mind that these economic fluctuations can be national in
scope or affect only certain pockets of the country.
Changing interest rates also influence real estate market
cycles. When interest rates rise, fewer people can qualify for
any given mortgage amount and demand drops - making it tougher
to sell your home, or obtain the price you want. The same is
true when interest rates fall, more people can afford to a buy
home or qualify for financing so the demand for housing
increases.
Does all this mean you need to be an economist to determine when
it is the best time to sell? Not at all! But staying aware of
the things that influence the cycles in real estate will help
you decide when to place your home on the market.
The Seasons of home sales
Seasons also affect buyer demand and in turn, how long it will
take to sell your home or the price you can obtain. For example,
fewer buyers may be willing to trod through snow drifts (if you
live in area with winter climate) to look at homes, but you will
also be competing with fewer homes on the market.
Conversely, spring tends to be an active time for real estate
sales. Homes and gardens start to look good and again buyers
will come out of hibernation and begin the home hunting process.
Parents with school children particularly like the spring and
are likely to buy a home. Homes are sold throughout the year, so
think of the seasons as only one factor in determining when the
best time to put your home on the market.
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