When should I sell?
Seasonal peaks and valleys
In most American markets, the best times to sell are late February to mid-June and early September to late November. More buyers will be out looking at properties and more will be making offers. In mid-summer and in winter, expect low offers -- if any at all. Leave these seasons to desperate sellers, and if you’re buying another house yourself, consider looking during these periods.
Ideally, prepare your home for the market well before the peak season to get started when the season begins. This will give you as much time as possible to sell, most likely avoiding the problem of needing to sell before the summer or winter dead period begins.
And if you can, sell during the February-June window when other sellers are less motivated to close a deal. Many sellers are more motivated to complete a sale in the fall season because they may see the need to pay income-reducing expenses before year’s end.
In a strong market
It’s tempting in a strong market to want to realize big gains, but of course if you intend to move to another strong market your gains will be swallowed up in the cost of your new home. And if you move from a strong market to a weaker market, you may end up eliminating mortgage debt in the short term (selling for $450,000 and buying for $350,000 for a comparable space) but future appreciation may likely be weaker in your new location in future, as well.
In a soft market
Selling in a soft market means fewer potential customers, a lower property value, and a potentially disheartening wait for a buyer at a reasonable price. But if your new home will also be in a soft market, a bargain awaits you after the sale while waiting for the market to improve might only lead to worse valuations for the foreseeable future. If moving to a stronger market, you will likely take on more debt or need to trade down to a lesser space, but you may see greater future appreciation of your new home than you would have ever known in your former soft market.
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