Updated: Jun 9
With the recent volatility of the housing market, many sellers are unsure whether or not it's the best moment to sell their home. In 2020 and 2021, house values increased dramatically - but are they still rising, or on their way down? It is up to you to decide when the most advantageous time to sell is.
Whether you're asking yourself, "should I sell my home right away?" or simply considering your alternatives, there is no correct response for everyone. The current market conditions will have a big influence on the sale of your property, but it's also crucial to consider your personal circumstances and motives for selling.
When Should I Sell My House?
Consider the following as a few suggestions to assist you in reaching an answer.
If Interest Rates Are Low
If you're thinking about selling and buying another home, now may be a good time. With low interest rates, you can afford more house for your money. If you're selling your home to downsize or move to a cheaper area, you'll also have more purchasing power (more from Investopedia) . Generally, it's a good idea to list your home when interest rates are low - as this will help boost buyer demand and make your property more attractive to potential buyers.
If Your Home’s Value Has Increased
If your property's worth a lot more than it was when you purchased it, selling now could enable you to enjoy life with the extra money in your pocket. Even if you're not planning on buying another home, releasing all that equity can provide financial flexibility and peace of mind that comes with being debt-free.
If You have Personal Motivations to Sell
Selling your home for personal reasons is tough enough - so don't put yourself under unnecessary pressure by waiting longer than necessary. If you have an urgent need to move or sell because of a family illness, job loss, divorce, or foreclosure; then go ahead and contact your local real estate investors who will be able to give you a fair cash offer and close much faster than traditional buyers.
When Should I Wait to Sell my Home?
While selling your house might be the goal, there are reasons for you to think about putting off selling your property. Let's look at a few situations where immediate sale of your house may not be the wisest option.
Is the Supply High?
In a buyer’s market, where there are more homes than buyers; you may want to hold off on selling until the supply subsides. With fewer interested buyers and less competition, it may be easier to sell your home for a higher price.
Do You Need to Sell Your Home Fast?
If you’re not in a rush to sell, then waiting may be your best option. The average home sale takes 3-6 months - which can feel like an eternity when you need money fast. If you’re not in a rush to sell, then taking the time to wait for an ideal market could be the right choice for you. If money is tight and interest rates are low; it might be tempting to cash out on your property gains now. But if you have plenty of time until retirement or are simply content where you're living, it could pay off to wait.
The Final Decision
When it comes to deciding whether to sell your house now or later, there's no easy answer. By understanding both the current market conditions as well as your personal motivations for selling, you can arrive at the best decision for you and your family.