Wondering whether or not it’s time to sell your house? There are many reasons why you might be considering selling your home such as:
- Major life emergency (like a serious illness or death in the family)
- Convenience (such as if you’ve inherited a house)
- Major life event (including divorce, marriage, children)
No matter what your reason for selling is, the timing of your sale can significantly impact the outcome! The real estate market can be unpredictable at times, and you might be wondering if it’s better to sell your house now or wait.
Within the world of real estate, springtime is considered the prime selling season! This is because the weather generally tends to be more favorable and yards and gardens look their full potential. Spring is also a convenient time for many people to purchase a home, as families with children often prefer to move during the summer to avoid disrupting the school year.
However, this also means that spring is a competitive time in the real estate market. The market tends to be a bit saturated this time of year, which can sometimes make it tough to make your home stand out or negotiate favorable terms.
The real estate market fluctuates as it’s influenced by various economic factors, like supply and demand. These market changes can affect the potential price you can fetch for your home, meaning waiting to sell isn’t always the smarter move despite a competitive market.
Because of these factors, it’s always considered best practice to speak with an experienced real estate professional who can help provide valuable insight in local market trends and ensure you receive the best possible price for your property. Read this article to learn more about current and future real estate market trends, how to find out what time is best for you to sell, and much, much more!
Discover your home’s worth online for free in minutes!
Four Current Real Estate Market Trends
Whenever you are considering whether or not to sell your home, you should make it a priority to inform yourself about current local real estate market trends. Here are some current factors to keep in mind regarding today’s real estate market:
1. Mortgage Rates Are Rising
15 and 30-year mortgage rates are at their highest since the early 2000s, and will likely continue to rise, but more slowly than the recent spike. Some experts predict rates will start to come down in 2024.
2. Home Prices Are High
Home prices are high, and will likely continue to rise or remain steady. While both interest rates and median home prices are forecast to continue rising, the housing market is expected to experience a slowdown over the next few years. This means that while prices are
still going up, they are going up at a slower rate than they were recently.
3. 2024 is Likely to be a Seller’s Market
There is a shortage of available homes on the market. That could start to change in the next year or two, but slowly. Greater demand for homes than available supply of homes coupled with rising prices and interest rates, means 2024 will likely be a seller’s market.
4. 2024 Will be Competitive
Despite the fact that 2024 is shaping up to be a seller’s market, it will remain highly competitive. Thus it’s important to examine both your local market and the overall real estate market before committing to selling, as well as be sure to speak with a real estate professional.
Four Reasons to Consider Selling Now
While there’s no denying that selling your house is a big decision, this also doesn’t mean that it’s a bad idea. There are many legitimate and strategic reasons to sell your home right away, like the following:
1. Favorable Market Conditions
Favorable local market conditions and high demand in your area can make it an extremely favorable time to sell your home. Some examples of favorable market conditions in the world of real estate include:
- High growth
- Lower interest rates
- Strong investment potential
2. High Demand from Buyers
High demand from buyers can help you fetch a strong price for your home. Many locations, like Denver, Colorado and Fort Worth, Texas are bustling right now, with numerous prospective buyers actively seeking properties.
This heightened demand is driven by factors brought about by the COVID-19 pandemic, like remote work arrangements, and many people’s desire for larger, more comfortable living spaces.
3. Potential for Competitive Offers
In many of these real estate markets, housing inventory is quite limited. As a seller, this can be an opportunity to negotiate competitive offers. Multiple interested buyers can result in bidding wars, which can drive up your final sale price. Many times this added competition also means your home will sell much faster.
4. Personal Financial Goals
When it comes to whether or not to sell your home and when to do so, your own financial situation and goals should play a pivotal role in aiding your decision. In many situations, you may find you need to sell your home right away, such as if you’re getting divorced or need to quickly relocate for a job opportunity. Selling your house should always align with your larger overall financial objectives, enabling you to achieve them or secure a more suitable living situation for yourself.
In any of these situations, it is advisable to speak with a knowledgeable real estate professional who can help determine the value of your home and advise you on whether or not now is the ideal time to sell.
Five Reasons to Consider Waiting
Selling your home right away isn’t always the optimal solution, however. There are also many reasons why waiting to sell your home can be a wiser decision. They include factors such as:
1. Pending Improvements in Property Value
If you believe that your property’s value is poised to increase in the near future, it might be wise to wait before selling. Many of these can boost your home’s curb appeal and property value, like:
- Interior or exterior home renovations
- Infrastructure developments
- Neighborhood improvements
If you’re considering selling your home now or in the near future, you should be keeping an eye on upcoming projects or trends in your area to help you time your sale for maximum profit. Waiting until these improvements materialize can lead to a higher selling price, thereby increasing your return on investment (ROI)
2. Expected Changes in Personal Circumstances
There are many personal circumstances that can also warrant waiting for a more ideal time to sell your house. They include factors like:
- Job changes
- Family planning
In many situations, it can be best to wait until your circumstances stabilize or align more favorably with the housing market.
3. Anticipated Shifts in Interest Rates
Interest rates heavily impact both buyers and sellers alike. Lower interest rates tend to attract buyers, which can work in your favor by leading to high offers. Unfortunately, if the interest rates rise, this can discourage buyers, making selling quickly the best option. Monitoring economic indicators and consulting with financial experts can help you track the direction of interest rates and make the right decision for your financial situation.
4. Market Seasonality
Spring and summer are the most popular times of the year for buying and moving. This leads to increased competition in the market, so if you’re not in a rush to sell, it may be advantageous to wait. You should always take into account your local market circumstances, however, and always keep in mind that the real estate market can quickly change.
5. Real Estate Market Trends
It’s not just local real estate market trends that affect the sale of your home. The broader trends in real estate on a national level can also impact the price and timing of selling your home. Some key market factors to track include:
- Market cycles
- Supply and demand dynamics
- Economic factors
What Financial Considerations Should I Keep in Mind?
Understanding your current financial position and as well as your future goals should also be a key factor in determining the best time to sell your home. Here are some important financial considerations to keep in mind as you make your decision:
Estimating Potential Selling Price
Whenever you’re considering selling your home, it’s critical to determine the potential selling price of your home. The best way to do this is to speak with a home appraiser or experienced real estate agent who is familiar with your local market. They can conduct a thorough market analysis, taking into account key factors like:
- Recent comparable sales in your area
- Current market conditions
- The unique features of your property
Calculating Net Profit After Expenses
It’s important to remember that there are certain expenses related to selling your home. It’s a good idea to calculate your net profit after expenses, so you can properly understand what you can expect to receive for your home once the sale is completed. Typical expenses associated with selling your home include:
- Real estate agent commissions
- Closing costs
- Potential home repairs
- Staging costs
Assessing Tax Implications of the Sale
The tax implications of selling your home can vary depending on your location, but can significantly impact your finances regardless. Because of this, it’s best practice to speak with a certified tax professional or accountant. They’ll be able to explain and help you understand the potential tax liabilities associated with selling your home. They can also explore tax benefits or deductions that may be available to you.
Considering Mortgage Payoff and Outstanding Liabilities
You should also consider whether or not your home is fully paid off when you consider selling. If you still have an outstanding balance on your mortgage, you must take care of this ASAP or pay off the mortgage from the sale proceeds. If you have outstanding liens or debts associated with your home, they’ll need to be settled before you can transfer ownership.
Moving and Relocation Costs
Besides the fees associated with the actual selling process, you’ll also need to allocate funds for the actual move. Since you’ll likely be moving to a new residence, you must take into account all the logistics related to moving homes, like:
- Hiring professional movers
- Renting a truck
- Temporary storage if needed
- Purchasing moving supplies like boxes or other packing materials
Future Housing Costs
Be sure to also consider your future housing costs and needs. You may require funds such as a down payment for a new house or rental, or money for establishing utilities. In any case, it’s always best practice to have a decent cushion of savings available, which can also seriously help reduce stress during what can often be an emotional transition.
Timing the Market For Your Situation
Paying attention to the market and its fluctuations can help inform you of the ideal time to put your home up for sale. If you’re unsure of what is right for you, it’s time to speak with someone who works in the real estate industry, who can help you understand what options are available to you in regards to selling.
What Emotional and Lifestyle Factors Should I Consider?
Besides just ensuring you get a great price for your home, there are many important reasons to carefully consider when selling. Emotional and lifestyle factors also tend to play a large role in this, and thus shouldn’t be discounted during this process. Here are some crucial ones that you should be considering:
Your Attachment to the Property
Most of all get emotionally attached to our homes. It’s only natural after all! Over the years, you’ve created countless wonderful memories with friends and family and built a life for yourself. The idea of parting with the place you’ve called home for so long can understandably be difficult.
Take time to note how you’re feeling and consider all the pros and cons of selling your home before committing to any sort of decision. Let yourself feel emotional or sad, and ensure you have proper support from people around you during this delicate time.
Timing Alignment with Your Life Goals
Whenever you’re considering selling your home, you should be sure this timing aligns with your life goals and future plans. In many cases, it can be wise to make a list of short-term and long-term objectives for yourself or make a five or ten year plan. It’s important to make sure that selling your current home aligns with goals and life aspirations, or you may end up regretting your decision.
Consideration of Your Family Needs
Changing or growing families can also be a huge reason that many people decide to sell their home. Some important family needs to consider when making this choice include:
- The location, size, and layout of your current home
- Your current school district
- Your proximity to work
- Your location in relation to specific amenities, like specialized healthcare.
Stress and Emotional Impact of Moving
Moving can be a stressful and emotionally taxing process. Consider how selling your home and relocating will affect your emotional well-being and that of your family members. Factors like the distance of the move, the familiarity of the new neighborhood, and the disruption to your routines should be evaluated. Preparing for the emotional challenges associated with moving can help ease the transition.
Community and Social Ties
Your home is often the anchor of your community and social connections. Selling your home may mean leaving behind neighbors, friends, and local affiliations. Assess the importance of your community ties and how selling your home will impact your social life. It may be necessary to proactively seek ways to maintain these connections after the move.
Emotional and lifestyle factors can sometimes clash with financial considerations. Evaluate how your emotions and lifestyle choices align with your financial goals. Balancing your emotional attachment to the property with your financial objectives is a crucial part of the decision-making process.
What Decision-Making Framework Do I Need to Keep in Mind?
So how do you ultimately make a strong decision for yourself and your home that you can feel confident in? Healthy decision-making framework helps ensure you’re making the best possible choice. Here are some tips!
Identify Your Goals and Priorities
Begin by clarifying your goals and priorities. What are you hoping to achieve by selling your home? This could include financial goals, such as maximizing profit or reducing debt, as well as lifestyle goals, such as accommodating a growing family or downsizing for retirement. Knowing your objectives will help guide your decision-making process.
Create a Pros and Cons List
Develop a comprehensive pros and cons list specific to your situation. Consider both the advantages and disadvantages of selling your home. This list should encompass financial factors, such as potential profit or loss, as well as emotional factors, such as attachment to the property and its impact on your family’s well-being.
Weigh Financial Factors
Be sure to thoroughly evaluate all financial aspects before selling. Calculate your potential selling price based on market research and expenses, including:
- Real estate agent commissions
- Closing costs
- Any necessary repairs or renovations
Many of these can impact the selling of your property, as well as the final price you’ll receive, so don’t neglect this particular part.
Consider Emotional Factors
As mentioned earlier, selling your home can often be quite emotional. Reflect on your property and your attachment to it before deciding to sell. Discuss the decision with your family or loved ones, ensuring their emotional needs and wants are heard.
Analyze Market Conditions
As you move towards selling your home, always do your best to stay on top of research and current market conditions in your area. Important things to consider include:
- Housing supply
- Pricing trends
You should also keep in mind that the real estate market is constantly shifting and evolving, so your research must also reflect this.
Set a Deadline
You should also hold yourself to a clear deadline for making your final decision about whether or not to sell. This helps avoid uncertainty or drawn out emotions, ensuring your decision to sell is based on what is practical and best for you. If you haven’t created your pros and cons list yet, now is a great time to do so.
Consult with Professionals As Needed
It’s wise to consult with professionals as you go through the selling process, including:
- Real estate agents
- Financial advisors
- Tax professionals.
- Home appraisers
- Home buying agents
Should I Sell My House Now or Wait?
When it comes down to it regarding the question “Should I sell my house now or wait?”, the truth is that it depends on your unique situation. Deciding whether or not to sell your home is a complex decision with no one-size-fits-all answer. The best method of action is always to do ample research beforehand so that you can make an informed decision.
There are many different factors that can come into play when deciding whether to sell your home now or to wait until 2024. They include:
- Your local real estate market’s trends
- Overall real estate market forecasts and trends
- Your current home’s amenities and desirability
- Your personal financial situation, goals, and needs
- The stress and potential emotional impact of moving
- What time of the year it is (with spring and summer being ideal)
- Whether it is a buyer’s market or a seller’s market
In these situations, speaking with a trusted and experienced homebuyer or home appraiser like the professionals at iBuyer can help ensure you get the best possible price for your property. Our process is simple and straightforward, without the headaches and complications that can be associated with selling your home. We partner with a network of real estate investors that pay cash for homes just like yours, with some closing in just two weeks.