One of the most important decisions you will make as a seller is when to sell your home. There are many things to consider when deciding the best time for you.
Let's go through the important areas to consider when deciding when to sell your home.
Defining Your "Why"
Why are you looking to sell your home? What is the main motivating force behind your decision to move? What does a successful move look like to you? Many people never stop to ask these questions before listing their home. Set aside some time to think about what you want. Start by asking yourself:
What am I looking to gain from selling my home?
What are the 3 most important things I want out of the sale of my home and why are these things important?
How will I know if selling my home has been a success?
You are ready to begin the process of listing your house once you can answer why you are looking to sell your home. Keep your answer to this question top of mind as you move through every stage of the process. Write it down on a piece of paper, keep a note on your phone and repeat your 'why' to yourself every day. If the process gets tough, you will need to have a clear vision of your goals to stay motivated and push through.
Sell First or Buy First?
If you already have your next home figured out then the answer to this question is easy. If not, most sellers have a hard time deciding whether to buy first or sell first. While there is no one-size-fits-all solution, let's review some of the pros and cons of each option.
Pros of Selling First
You know the exact amount your home will get when you go to buy your next property. This allows you to be more precise with your budget.
You will not be under a time crunch to have funds available to buy your next home.
You will be in a better position to avoid having to own two properties at once.
Selling first puts you in the power position during the sale of your home. You do not NEED to sell, which gives you an upper hand during negotiations.
Cons of Selling First
If you sell your home, the pressure will be on to find your next place before the closing date.
While you have more power on the sale, you may have less power when you go to buy.
Pros of Buying First
Buying your next home before you sell your current place, removes the time crunch to find the right home for you.
You can feel comfortable taking your time to find a home with your must-haves.
Cons of Buying First
Buying first puts time pressure on you to sell your home.
You may need to submit an offer that is conditional on the sale of your home, which can weaken your offer.
You may feel more pressure to accept an offer that you are not happy with.
Regardless of which option you pick, there are things that can help you deal with the negatives. For a short gap between homes, consider staying with a friend of family member. For a longer gap, explore short-term rentals. If you will own two homes at once, you may need bridge financing.
Bridge Financing: A loan to buy a new home before the funds are available from the sale of your house.
Time of Year
In most areas, sales peak during the spring and summer months. Real estate is seasonal. February, March, April tends to be great months for sellers.The slowest months for sales tend to be December, January and August.
How's the Market?
Interest rates and buyer confidence in the real estate market affect prices. Rising interest rates have pushed buyers to the sidelines. With fewer qualified buyers, sales are down.
Review
It's important to understand your why before listing your home. Review the pros and cons of selling first versus buying first to decide which option is best for you. If you have the flexibility, you may want to target the spring market and avoid the holiday season. Keep an eye on local market statistics to keep informed on how the real estate market is performing.
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