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5 Factors to Consider Before Selling Your Home
Are you thinking of selling your home but aren’t sure if it’s the right time? There are many factors that should be taken into consideration when deciding to sell your home. Timing will greatly affect how fast your home will sell and for how much cash. Your local economy and mortgage interest rates will matter as well. But, before you put up the For Sale sign on your yard, consider these five things first.
1. It’s not always best to sell in the spring
Many people think that it’s best to sell during the spring home-buying season, which runs from April to June, but that’s not necessarily true. A recent study actually found that during December, January, and February, sellers typically net more above asking price. This could be due to the fact that in the spring, you’ll have more competition from other home sellers and you may need to adjust your price to attract buyers. An alternative is to list your home in February or March so that your home is on the market before the competition. A lot of people relocate for jobs in the winter, so this is also a great time to attract buyers who need to move quickly and are looking for a new home.
2. Watch the local economy
Prices are affected by the strength of the U.S. housing market. When the economy is strong, the value of a home generally increases 3% to 4% annually. Before listing your home, assess your local economy’s condition. Two resources that you can use are the S&P CoreLogic Case-Shiller National Home Price Index, which monitors the sales of single-family homes in 20 major U.S. cities, and the Metropolitan Median Area Prices and Affordability tracker from the National Association of Realtors.
3. Pay attention to mortgage rates
When mortgage rates drop, you can expect more people to buy homes. Make sure you are monitoring the mortgage market. A great tool from Realtor.com is their mortgage rate trends tracker, which allows you to follow interest rate changes in your local market.
4. Make sure your home is in good shape
If you want to make sure you get the most cash for your home, make sure that it’s in the best shape possible. If you need to, make repairs to your home before listing it on the market. This is especially true for any defects or conditions that can affect any function of a major house system. Some things to take care of include leaks, malfunctioning built-in appliances, insect infestations, and any safety or environmental hazards. Your home will also be more appealing to home buyers if you make cosmetic changes such as repainting or taking care of the landscaping.
5. Wait until you are ready
At the end of the day, what matters is if the timing is right for you. Maybe you’re expanding your family and need to move into a bigger home, are changing jobs, or need to downsize because your kids have officially left the nest. Whatever the reason, your own personal situation will help you decide whether to put your house on the market now or wait.
By taking these five factors into consideration before listing, you can ensure you are selling your home at the right time and help to increase your chances of selling faster and for the most cash.
