The Best Time To List Your Home For Sale
As a homeowner, one of the biggest decisions you can make is the decision to sell your home. You've lived in it for a good number of years, and hopefully, there is no urgency or pressure behind the decision to sell other than you making a profit and/or improving your quality of life through the purchase of a new home.
As you try to use your best judgement skills and internet analysis to determine your home's true market value and which real estate agent to reach out to, try to ask yourself an important question, if not THE MOST important question. Is this a good time to list my house for sale? And, how would I go about finding that out?
Here's a number of things to consider as you are starting this process which will ultimately help you make a more educated decision as well as have a better sense of judgement when you do hire your real estate agent to sell your home.
1. Who am I up against in the neighborhood?
If you live in a gated community, or, you're part of a community that's non-gated, you want look specifically at what's FOR SALE right now. Not what's in escrow or what had sold recently, but what's available to the consumer, right now. Reason being is that if there's TOO MANY homes available on the market, you may not be in a position of leverage unless your location and upgrades are much more significant than the competition, or at least 1 of the 2.
2. What's in escrow in my neighborhood?
The reason this is important is because a neighboring home that sells below local market prices for what ever reason, may hurt your asking price. Similarly, a neighboring home that sells at or above local market prices, may help you solidify your asking price.
3. What was recently sold in my neighborhood?
Similarly to #2, by doing a study of the recent (6 months) sales in your neighborhood and understand what consumers were willing to pay for a home of similar criteria to yours will help you get a better idea of how much a home buyer would be willing to pay for your home.
4. Go to open houses in your neighborhood
When's the last time you went to an open house? probably when you first bought your home. Now it's time to go out there again, only this time, you need to study your competition. Take a look at these houses, try to compare them with your house, where do they lack? where does your home lack? weight the pros and the cons. Speak to the agent that's house sitting, ask them about traffic, any offers, or any kind of movement.
5. Supply and Demand, and market health
Here's how you can find out:
- If multiple homes have been selling in your neighborhood within the last 6-12 months, that's a good sign that there's demand in your neighborhood.
- If the same sold homes were on the market for a short period of time, that's also a good indicator of demand plus it indicates that consumers are making purchases, which may lead to the assumption that the market health, at least from a local neighborhood buyer demographic and perspective, is healthy.
- If there are multiple homes for sale in your neighborhood, and they have been on the market for a long time, that indicates strong supply, weak demand. Now it becomes a matter of identifying the problem, is the inventory undesirable, over priced, or is the general buying market having issues.
Basically, so long as there's active consumer movement in your neighborhood and you see homes selling, buyers buying, without any significant price reductions or very long periods of escrow, your local market may be deemed healthy.
- Follow the interest rates, if they are rising, the demand could decrease.
- Follow unemployment rates, if they are rising, the demand could decrease.
- Follow Student Loan debt delinquencies, if they are rising, the demand could decrease.
- Follow Auto Loan debt delinquencies, if they are rising, the demand could decrease.
- Follow Corporate Post Tax profits, if they are dropping, the demand could decrease.
These are only a few examples.. but generally speaking, you want high demand and low supply, in your neighborhood to achieve maximum success with selling your home. It can be tough to predict, but easy to identify, you would have to take proactive action, and fast, to list and sell your home before market conditions change again.
There's a lot more that goes into figuring out when the best time is to jump into the market, and the best way to do this is hire The Skyworks Group to do this market research for you. What ever city you are in, if you are in Southern California, we can get to you and give you strategic disposition and marketing solutions, tailored specifically to your family's needs.
Disclaimer: This article is provided for informational purposes and should not be relied upon as legal advice. If you would like to work with The Skyworks Group, please contact us directly.