When Is the Right Time to Sell Your House
Sioux Falls homeowners might be asking themselves, “When is the right time to sell my house?” This is a loaded question but an important one to ask, as there are many crucial factors that come into play when selling a home.
Whether your decision to sell is personal or financial (usually a little bit of both), selling a house is all about timing. Not only do you need to make sure you’re ready to sell, but with all of the housing market data available to you, should you sell right now?
If the local housing market is telling you to wait, do you have that luxury? This is very important to consider. Then it’s a matter of need versus want. However, sometimes life happens and certain situations don’t allow for patience.
Fortunately, the specialists at Amy Stockberger Real Estate (ASRE) are here to help you answer the tough questions. No matter your circumstances, we’ll figure out the right time to sell your house while maximizing the full value of your home at the same time.
Is now the right time to sell a house?
Obviously, the reason for selling your home will ultimately determine whether you decide to sell or wait. Life events such as a job relocation, a new addition to the family, or a change in financial status can oftentimes be non-negotiable. That being said, if time is on your side, below are some key factors to consider.
What month are you hoping to sell your home?
Spring and summer are widely considered to be the best times of the year to sell a house, with the highest asking prices generally found during June and July. If you don’t have the flexibility to wait for warmer weather and more traffic, don’t worry! While it’s not always ideal, there are certain benefits to selling your home during the winter.
What are current mortgage rates?
In addition to helping homebuyers, low mortgage rates can also benefit sellers. If more people can afford to buy a house thanks to lower mortgage rates, that could equal more potential eyeballs on your property. Plus, if you’re planning to buy and sell a home at the same time, those same low mortgage rates will give you a financial advantage as well.
How does the local real estate market look?
Just like seasonal trends, the health of your local real estate market will play a significant role in your asking price and the speed at which you’re able to sell your home. How does the market look in terms of the following:
- At what rate are houses appreciating in your current neighborhood?
- How does the appreciation in your neighborhood compare to where you'd like to move?
- Are houses going quickly or have sales slowed down and there's plenty of inventory in the area?
Undoubtedly these are all great questions to ask. However, finding the answers to these questions can be a challenge. And even if you’re able to recognize a couple of market trends in your area, it’s essential to know the entire story of a neighborhood before you decide to sell your home. Working with a real estate team like ASRE can be beneficial for many reasons, one of them being we have unprecedented access to community data, analytics, and current market trends.
Is now the right time to sell your house?
Of course you want to strike when it’s a seller’s market, during the spring or summer, ensuring the most potential homebuyers see your listing; therefore, maximizing your property’s value. That being said, the best time to sell your home is always when you’re financially (and emotionally) ready.
What is the condition of your house?
Before you list your property for sale, address any minor projects or small repairs to enhance your home’s curb appeal to show potential buyers the house was well taken care of. Plus, this will help you avoid any unwanted surprises during the home inspection that would negatively affect your initial listing price. If your house could use some repairs but neither time or finances are on your side, you can adjust the price to reflect the condition of your home and sell it as-is.
How much home equity do you have?
Take the current market value of your house, subtract your home loan (and second mortgage, if applicable), and you have your home equity. The profit you make on your home sale should be enough to cover your mortgage and selling costs, leaving you with money to put toward your next house purchase and moving expenses. Although certain circumstances may determine the urgency of your home sale, if you have little to no equity, you may want to wait until your house increases in value or you've paid off more of your loan before you list the property.
Can you afford the cost of selling your house and moving?
In most cases, you will make money on your home sale. While the amount of profit will differ from seller to seller, you may incur certain expenses along the way, such as real estate commission and part of the buyer's closing costs (in some instances). Additionally, moving can cost you anywhere from $1,000 to $5,000, depending on many different variables. If the profit made on your home sale isn't enough to pay off the aforementioned expenses you may want to reconsider listing your property and wait until you've built more home equity.
Thinking of Selling Your House in Sioux Falls?
Having this information can help you determine when it’s the right time to sell your house but to get more in-depth answers and analysis, work with ASRE, South Dakota's highest producing real estate team. Our experience and knowledge of the Sioux Falls area will help you maximize your home’s value, sell faster, and eliminate any headaches along the way.
- Michelle Nett