3 Questions to Ask before Selling Your Home
Welcome back to PDFfiller Realtor Guest Blog series, which brings you advice from the experts! The first part of this two-part post comes to us from Holly Gray who discusses when is the right time to sell your home. For more great posts from Holly, check out her website at www.EastandEmerald.com.
Many homeowners often wonder when is the right time of year to sell their home. It is one of the most common questions real estate agents get. As a whole more listings come up for sale during the summer season, so many homeowners have concerns about listing property at any other time of the year. The thought process is, “well everyone else is listing their house during summertime, so shouldn’t I?” A valid question, but following the crowd isn’t always the best move.
The reality is that there isn’t a blanket right or wrong time of year to sell a home. It’s just not that rudimentary. You have to consider certain factors when choosing the right time based on specific factors. There are some very good indicators you can use to help minimize your risks. Asking these questions will help arm you with the knowledge you need when deciding whether now is the right time to sell your home or not.
1. Is it a sellers’ market?
Timing really does depend on supply and demand. In many markets, if not most, we are seeing low inventory in the U.S.. During the recession new construction building stopped and subsequently we fell into a housing shortage. The way you can determine if it’s a sellers’ market is by looking at how many months of inventory are on the market in your area. Typically, anything under 4 months of inventory means it’s a sellers’ market. Anything over 6 is a buyers’ market. And a balanced market is between 4-6 months of inventory. If properties are selling fast, it’s a strong indicator that now is a good time to list your property.
2. How are interest rates doing and what’s the forecast?
If interest rates are decreasing, buyers will probably wait. However, right now in the U.S. we are seeing very low interest rates. These have been predicted to rise twice this year and haven’t. But buyers know they will soon rise and are shopping for homes. If interest rates are predicted to rise, you can bet buyers previously on the fence are looking. And the moment the interest rates do rise, the buyers that have to “see it before they believe it” will also start shopping before the rates go even higher.
3. Is your home in the condition it needs to be in order to receive top market value?
Sellers need to be wise with their approach before selling. Even if you are in a hot sellers’ market, pricing too high and not doing the necessary maintenance prep can subject sellers to low ball offers and a high number of days on the market, ultimately netting much less than the competition. Sellers who do spend the extra time and effort to clean up the yard, hire a staging consultant, service the components and remember the importance of curb appeal have the best chance at selling for full price and attracting the bulk of the relevant buyers.
Every year is different than the last, and will be different then the coming year ahead. Hindsight is 20/20 and there is no crystal ball when forecasting the future. Considering these three questions before selling is the first step in coming to a decision you, as a homeowner, can feel confident about.
If you are a homeowner right now considering selling your home around the holidays be sure to read my next blog installment – “Reasons You Should Sell Your Home During The Holidays”.
EAST AND EMERALD: Adamas Realty
Broker & REALTOR | (direct) 206.291.5453
800 Bellevue Way NE Suite 400 Bellevue, WA 98004