Selling your home or property is almost always a stressful and exhausting experience, and the chances are that once the sale is complete, you will worry yourself silly over the price you accepted.
It happens to everyone, and all the what-ifs and if-onlys won’t matter a jot.
However, the key to a successful sale – at a price you are confident about – is to understand a few of the basic rules about the best time to sell up and move on. Here are some savvy tips on how to work out if the time is right – or wrong – to capitalize on your real estate.
Ultimately, the time has to be right for you. And you should never compare the price you got to the price achieved by the person that sells it after you – every year the market changes, and the situation is entirely different. There are all kinds of myths about the best time to sell a house, and you need to see them for what they are. However, some of the basic principles of house sales stack up.
For example, spring is the most popular time of year to sell, quickly followed by the fall. Winter, on the other hand, can be incredibly difficult as many people focus on the holiday season, and won’t start thinking about the complexities of a house move until well into January. Be wary of summers, too.
Many households go away on vacation during this time of year, and even if they stay at home, the chances are they will have too many childcare issues to deal with a move. And make no mistake about it – the time of year you decide to sell does make a difference. The more interest you drum up, the higher chances of you starting a bidding war for your real estate.
The different markets
Next, it’s worth knowing the different types of markets that occur in real estate. The cold market – also known as the buyer’s market – happens when there are more homes for sale than there are buyers.
In situations like this, house prices tend to fall, and the likelihood is you will need to drop your asking price, and wait it out for a hot market.
According to CNN.com, a hot market is also known as a seller’s market and describes a point in time when there is a lot of prospective buyers but not enough houses on the market to meet demand. In times like these, you can expect to sell for a lot more than even your asking price, in some cases.
Finally, there’a the neutral market, when there is an equal number of buyers and sellers. It’s an even playing ground, and selling during a period like this is a pretty safe choice. You could wait it out, of course, but you won’t know the direction of travel until it actually happens. Is it worth the risk? It could be – but no one can be sure.
When you’re in financial difficulty
As a rule, holding out for the right price is always going to be the best option when selling a piece of real estate, but there are always exceptions. If you are struggling for money, for example, it can often be essential to get back on your feet without any repercussions – defaulting on a home loan, for example, can lead to a lot of problems in the future. There are a couple of choices for a quick sale.
First, you could go down the private selling route and offer someone a bargain they can’t refuse, but you can also use a fast buy service. You can head to WrenRealtyinc.com to find out more on this kind of organization, but if you need to sell quickly due to financial reasons, the quicker, the better.
Sure, you can wait it out for a higher offer from a private buyer, but there are no guarantees you will find one, and the clock, as they say, is ticking. Every month that passes means another mortgage payment, and, therefore, less profit.
Catching the crest of a wave
The real estate markets tend to fluctuate a great deal, and there will be times when your area becomes popular, and times when that popularity recedes. If you have any inkling you will be moving on soon, keep this in mind at all times, as it could end up making an enormous difference to your eventual sale value. You have to be flexible with this attitude, however, and be prepared to move on at almost a moment’s notice.
The advantages of being adaptable are pretty clear. You’ll earn more from the sale and have more for your down-payment on your next home than you would from selling in a temperate market, of course. And you will also increase your chances of starting a bidding war – popular locations will always bring in the multiple buyers.
The empty nest
The family home is, of course, a huge emotional attachment for everyone that lives in it. But once the kids have left, is it worthwhile hanging on to? All those empty bedrooms, extra bathrooms and space cost money to heat, keep in shape, and look after. And there’s a chance that you will feel like you are rattling around in your home, rather than living in it comfortably. Once your home stops fitting your lifestyle, it’s advisable to move on – emotional attachments or not.
The almost retired
Finally, it’s the same principal for when you are nearing retirement. One of the best ways to ensure your later years are relaxed, comfortable, and, most importantly, sustainable, is that you have a solid financial plan in place. As we all know, selling a home can be incredibly complex, and no one knows exactly how much they will be able to sell for until they agree on a deal.
It’s important to have that financial stability, so your best bet is to seek out a new place to live before you retire. This way, you can guarantee yourself not only a fixed amount of money, but also the home that will help you in terms of comfort, cost, and suitability for old age.