Well, the straight, no-brainer to that question is: sell when it’s a seller’s market!
But apart from that one-liner, there are numerous things to consider when you want to be sure of the right time to sell a home.
The right time for YOU to sell anything – not just a house – is when you’re ready to sell.
Yes, the market does play its role in deciding the right time of course.
For example, from the late spring onwards until the end of summers homebuyers are on the go in the US.
That’s the time when the market is superhot, with sales peaking in June and July.
That may be a great time for you to list your home but the question is are you ready to list in those months, precisely?
So, let’s take a look at the things to consider to check if the time is right to sell your home.
4 Things to Consider to Time Your Home Sale Right!
1) How Much Is Your Home Worth?
To get a general idea of how much your property is worth you can look at listings of houses from your neighbourhood.
If no house on your block is on sale, look at comparable homes in the wider market.
Once you know your property’s worth, find out how much equity you have on it.
What’s equity? It’s the market value MINUS the balance on your mortgage.
So, for instance, your home is worth $300,000 and the mortgage balances at $250,000, you’ll have $50,000 in equity.
Of course, you’d want the equity to be huge enough!
Because you want it to cover the selling costs plus your next mortgage liability (even the down payment for your next home, ideally).
But, according to Bankrate, most homeowners aren’t able to build enough equity until they’ve lived in a home for 5 years.
Want to learn more? Read about the 4 best ways to value a real estate property.
Takeaway: If your home is worth ‘reasonably’ higher than the mortgage it may be the right time to sell it.
2) What’s the Condition Of Your Property?
Before you decide to put your house up on the market take the time to give it a once-over.
That’s because many homeowners just list their house on the whim not factoring the condition of the house into their decision.
That’s a terrible idea, and a sure way to wind up with a below-average deal.
For example, if there are major repair needs like floor reframing, you’ll need to back down on the asking price to allow for the repair costs for the buyer.
Knowing your property’s history will also help in this case.
Flipside, if there are plus points on your property and you’re unaware of them you’ll still end up with a bad deal.
You see that?
So, to make sure you’re ready to sell your abode inspect its condition inside out.
Seek professional help to spot any areas that demand fixing, or areas that can help boost your property’s value.
Only after the major repairs are done and the property upgraded will you be ready to sell!
3) How Much Are the Selling Costs?
A lot of homeowners fret about the costs of selling a home that go somewhere about 6% of the final price.
But the bitter truth is that that’s just the tip of the iceberg.
Because apart from the 6% cut for the fixed costs of legal proceedings, agent fees, etc. there can be other costs eating away at the end figure.
The others costs include the costs of moving, renovations and staging preparation.
(Also don’t forget the costs of time, effort and energy that go into selling. Though they don’t qualify for tax relief, LOL!)
According to some experts, the cost figure can take away about 10% of the price, which again shows how important it is to have enough equity on the house.
So, get down to calculating the cost amount you need to pay on the sale.
If the ‘net proceeds’ still seem profitable it may be the right time for home selling.
Find out more in our article on the True Costs of Selling Your Home (There Are More Than You Think).
4) Are You Ready to Relocate?
FINALLY, not everything is about money.
Once you’re done running the numbers you’ll need to consider your life situation (do it before the number Armageddon, whatever makes sense to you).
Sometimes, every calculation may come out in your favor but still, it may not be the time for you to sell your home and move.
To make sure you’re taking the right step, consider your priorities in detail.
Example, is the move purely for financial gains? – If it is, then put the emotion aside and sell.
Or, are you looking to relocate closer to your office? Maybe, you need a bigger home because you have kids now? Perhaps, you’ve got neighbor issues…?
The point is you must be clear what selling the home means to you.
Because in the end, the market condition and all the other things being equal, the question is: are YOU ready to move?
Thinking About Selling Your Home? List With AQRE!
At AQRE Home, you can list for free, receive offers automatically in your inbox, and the entire transaction could be handled without the need for travel, cutting down the time to sell your home even further!
If you are interested, our team can even match you with a pre-approved agent in your area. We only partner with top-performing professionals in your market who’ve earned our seal of trust by actually caring about your financial goals, so you can trust their advice and expertise.
List For Free Today at www.aqrehome.com!
And if you want to refinance or get pre-approved for a mortgage before you start looking, visit our partners at AQRE Lending for a quick and easy pre-approval process that will get you the financial results you are looking for.