Many people think that spring is the best time to sell a home.
This is when gardens are in bloom, the sun is shining and most homes show well. Although weather considerations do come in to play, the best time to sell depends on various other factors.
Sellers usually do well when there is not a lot of competition from other listings. When there aren't a lot of homes for sale in your area or in your price range, buyers have less to choose from. In this case, buyers often compromise and buy a home that doesn't exactly fit their specifications. This usually works in the seller's favor. Buyers tend to be pickier when there is a lot of inventory to choose from.
Although a lot of competition isn't great for a seller, a little competition is not necessarily bad. This gives buyers an opportunity to compare one house against another that is similarly priced. It can be difficult for buyers to make a decision when they don't have the opportunity to make a comparison.
HOME SELLER TIP: A healthy inventory of homes for sale should not be a deterrent to selling as long as the inventory is being depleted on a regular basis. Ask you listing agent to provide you listing and sale data from your local Multiple Listing Service.
It's useful to know how many homes like yours came on the market in your area during the past week, the past month and during the past several months. Also find out how many homes similar to yours in the area were "pending sale" during those periods.
Pending sale is a designation used for listings that have sold but not yet closed. If there are 25 new listings for every 15 that are pending, your market is moving at a fairly rapid pace. On the other hand, if there are only 20 new pending sales for every 80 new listings, you should anticipate a lengthy marketing period.
The supply and demand forces working in your area are an important consideration, but other factors can tip the scales for or against you. For instance, interest rates play a vital role in real estate market activity. In 1981, when interest rats peaked at 18 percent, home sales were very low.
Record low interest rates have created a wonderful selling opportunity for sellers across the country this year. Low interest rates make housing more affordable. They help first-time buyers get into the housing market. Also, they help trade-up buyers make the move to bigger and better homes, which frees up more starter homes. Interest rates are expected to stay relatively low, at least until the economy shows signs of a lasting recovery.
Weather permitting, mid- to late-winter can be a good time to sell, particularly if interest rates are low. Normally the inventory of homes for sale dwindles in December as people focus on the holidays. Sellers who market their homes early in the year often find little competition from other sellers.
Overall economic conditions in your area influence local real estate activity. If unemployment is high, and more layoffs are anticipated, this can create a negative sentiment. Consumers don't make large purchases when they're worried about losing their jobs.
Selling a home requires an emotional commitment. This needs to be considered when deciding if it's a good time for you to sell. Some sellers are only interested in selling if they get a certain price. If this price has no basis in reality, your marketing exercise will be a waste of time.
THE CLOSING: Buyers pay what they perceive is market value. A successful sale requires accurate pricing for the market.
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