Should I Sell My House Now or Wait?
In today's housing market, to say for sure if now is the time to sell or wait to sell your house will not only depend on the current market condition now; you will also need to evaluate your own personal situation, especially the reason why you want to sell.
If you’re considering selling your house and asking if now is the right time to sell or wait, we have a lot to share with you so that you can make a final decision. We shall begin by sharing the 'when’s' to sell your house.
When to sell your house
If the circumstances provide favorable selling scenarios, you should sell your house. Here is a list of scenarios that can signal you to sell your house.
1. Low mortgage interest rates
Sellers will experience the most success. More buyers will be looking if mortgage rates are low. A fantastic moment to sell your house and buy a new one may be right now. You may finance your new home more affordably by paying less in interest, thanks to lower mortgage rates.
Low-interest rates are advantageous to homeowners because they frequently increase demand. After all, prospective buyers will be trying to benefit from them.
But a time with low rates is a terrific opportunity to sell your house if you're not concerned about buying and selling simultaneously.
2. If there is housing inventory
In a buyer's local market, as opposed to a seller's market, there are more homes available for sale than there are buyers, giving the home buyer more negotiation leverage when looking for a property.
The seller can frequently set a higher competitive asking price and make fewer concessions on contingencies and other negotiating terms when selling the house if there are fewer houses on the market for buyers to choose from.
If the housing supply or housing inventory is less, then now is the time to sell. The seller will definitely sell sooner and make and good turnover on their home sale.
3. Relocate for a job or other life-change
Is your new work forcing you to relocate, or is the hand of change beckoning you to shift your life circumstances? Selling your house in this situation might not be an option.
This is different than looking to purchase a second home while maintaining your existing one throughout the transfer. However, if you have compelling personal circumstances to sell your existing house and buy a new one somewhere else, you should give it some thought, particularly if it is a pressing one.
If you're so much in a hurry and don't feel like you can wait to read through this article to know whether to sell your house now or wait, the least you can do to help yourself is get a good real estate agent to assist you with your phone sale.
4. Increased home value
A home is a great investment property. A home's value may have increased recently, making it an excellent time to sell and get a profit. You can sell your home if neighboring property values have improved to the point where you have accumulated a sizeable sum of home equity.
You might always look into other possibilities if you aren't ready to sell but still want to benefit from your home's appreciation. A cash-out might be a better choice for you if you want to stay and make improvements to your house rather than sell it, and it might even leave you with money in your pocket.
5. If you are ready to downsize
Many homeowners are caught in the maze of uncertainty and are unsure of what to do with their properties when they are unable to maintain them. It's a smart idea to downsize. Compared to home maintenance, it might be more affordable.
Downsizing might even be necessary for older households. For monetary, mobility, or other health-related reasons, it could be necessary. A smart time to sell your home can be now if keeping it has grown challenging.
6. If you need to upsize
If you need to buy a larger or more roomy property, possibly because of your growing family, you should sell your smaller, less accommodating one. Or perhaps your job has changed, and you now require a home office. Your decision to sell now may be heavily influenced by the need to upgrade.
7. Selling a second or inherited home
You’re already a homeowner who lives in their current house and isn’t trying to buy another home; instead, you want to sell a second property you’re not looking to live in, like an inherited home.
The time may be right.
8. You can’t afford to keep your home
Selling your property immediately can be the only option for homeowners who want to prevent future foreclosure due to changes in their income or other monetary setbacks.
When to wait to sell
There are also good reasons you should consider waiting, just like there are good reasons to sell your house.
Let’s go over a few scenarios where selling your home right away may not be the best choice.
Not enough equity
How much equity do you have? Having established how much equity you have, and it indeed is much, you will profit more from selling your house. When you sell a home, you should make enough from the sale to pay off the remainder of your mortgage plus any closing costs.
If you don’t have much equity built in your home, you could get stuck breaking even on the sale – or worse, having to pay to get rid of the house because the costs of the mortgage and closing costs exceed what you made in the sale.
Supply Is high
There are many more homes on the market than there are buyers. This will make it challenging to sell the home because the seller could have to lower costs, missing out on generating a profit. In this situation, delaying the sale is a good idea.
You will be in a competitive position for the buyers' attention as the seller in this scenario. You might have to sell your home for less than you had originally anticipated, or you might be forced to make concessions to your potential purchasers, such as promising to make repairs to specific areas of the house before the sale, etc.
Although selling your home in a buyer's market isn't impossible, the conditions aren't as favorable as they can be in a seller's market.
If you can’t afford to move
The current increase in housing costs has potential drawbacks. When you're on the sell side, it's fantastic, but is it worthwhile to cash out now if you'll have to give up those profits to purchase high later?
The optimal time to sell may not be right now if you cannot afford your next house or if the cost of temporary housing is out of your current price range.
High Mortgage interest rates
When interest rates go up, selling can be draggy or, in other cases, halted. Increased or rising mortgage rates make home values, and offer prices come down.
That doesn’t necessarily mean it’s a bad time to sell; it just means you will want to carefully evaluate your selling objectives and consider if you might benefit from waiting.
However, it does not mean that you cannot sell your home, only you may not expect as much profit.
If your next purchase is too expensive
There will be additional closing expenses, lender origination fees, and the down payment to consider when purchasing a new house. You shouldn't sell your home just because you can earn enough money to pay off your old mortgage and closing charges.
If your sale results in a loss or a little profit, keep in mind that you will require a sizable sum of money to close on a new home.
It makes sense to hold off on selling your existing home if you don't have enough money or more money saved to cover your next purchase. Charging a higher price may not even be a better option.
You can’t list your house if you’re in the middle of remodeling it. It can take time, and also, unfinished home improvements can be a huge turn-off to potential buyers and could drive away home buyers that may have otherwise been interested in the property.
It’s a good idea to finish any remodeling projects that you have in progress before listing your house for sale. If you do not want to wait to sell, you may consider selling as-is.
Tips for selling your home
A discussion of the benefits and drawbacks of selling your property sooner rather than later is provided below. Here are some actions you may take to receive the greatest bargain if you've thought about them and decided to list your house for sale.
Find a good real estate agent
Most real estate professionals can give you advice and guidance, particularly amid a hot or unpredictable housing market. Search for a good candidate if you have to interview them. You can ask friends or family members to recommend real estate agents they’ve had a good experience with.
The right realtor will help you navigate a home sale or home purchase, and show you every step of the way what better way to go.
This is typically a challenge for most homeowners. If your property needs repair, its chances of selling are low if you intend to make a great profit out of it. To help land the best offer for your home, make necessary repairs. Prospective buyers expect to meet a well-set home. It is usually the drive that moves them to buy the property.
Declutter the interior:
If you don't have the time or energy to get the house shining, schedule a cleaning service. Take down personal images, clean up debris from surfaces and floors, and make an effort to organize and simplify your home.
Fewer furnishings make a space appear larger, which appeals to some purchasers who want a huge home. Place furniture in a way that helps the room's arrangement flow and eliminates anything extra. This is an essential factor in buyer demand.
Add curb appeal outside:
Homes without curbs differ from others. It's typically not a life-or-death situation if they can't be added to the house. Consider improving your home's curb appeal if you can; it's one of the main opportunities for properties to sell.
Making a strong first impression extends to your home's exterior, so it's important to update the curb appeal before potential buyers arrive. The front entrance might use a fresh coat of paint, or the landscaping and walkways could be upgraded or improved.
Invest in home staging
Consider staging your home for sale or organizing an open house. While house hunters may like attractive homes with unique décor in good photographs, they also prefer to get a first-hand representation of how the property might actually appear.
Staging a house for sale can make it easier for potential buyers to see how different spaces might be used and give it a more welcoming and elegant appearance.
Other factors that may help improve your selling chances include pricing your home right, considering leveraging programs, and staging a home office because buyers today are looking for homes with office areas.
However, whether you want to sell now or wait for a set time, as a homeowner, you have to look forward to the consequences that pertain to either of the options you settle for when you finally choose because whether you sell or wait, there’d always be things to do and undo to finalize the processes. This is one of the features of real estate: it is inconsistent.
Working with a top real estate agent who can lead you through the turbulent waters of a shifting property market is the only surefire method to know what to do in your specific circumstance, whether buying or selling.
It might be wiser to wait for now if you don't have a clear strategy for what you'll do after selling your property or if you worry that you could be severely affected by a potential recession.
Should I sell my house FAQ
Should I sell now or wait 2023?
Even though a recession may occur in 2023, borrowing rates are anticipated to stabilize, and some purchasers are anticipated to return to the market. Even though it might appear less exciting than the peaks of 2021, buyers who have lived in their properties for at least a few years might anticipate seeing that their property value has increased.
Is the real estate market favorable today?
The real estate markets are highly impacted by interest rates, so as interest rates fall, so do mortgage payments, increasing demand for real estate and driving up prices. The level of mortgage rates in 2023 may likely be influenced by how much home values fall. Home prices may still rise year after year.
Should I sell my house before the market crash?
Home prices typically go up before a recession hits. It becomes a favorable seller's market because your capital gains taxes may increase since there will be a bigger profit between the real estate's acquisition and sale prices.
What should I know about housing prices?
Real estate home prices depend heavily on the market (location, location, location) and national trends. Home prices can also vary based on home type (as-is, condemned homes, townhouses, etc).
What important factors should home sellers be concerned about in today's market?
In the housing market, when seller put up their property on the market, it could also mean that they've done all there needed to be done. Here are what considerable functions sellers must undertake to make good on their home sales:
- The housing market, interest rate, the local market conditions, and the foreseeable future.
- Monthly mortgage payments, new mortgage, down payment, and now understand when it's a buyer's market.
- Sellers should look for a good time to sell and their latest mortgage statement, and they should also know when price reductions are necessary.
When is a good time to sell?
Generally speaking, the greatest time to sell is when buyer demand is high demand and low supply and interest rates. Another good time to sell your home is sure they know why they want to sell regardless of the market conditions.
How long does it take to sell a house?
How long it takes to sell a house varies across communities. Generally, for-sale homes take a period of 7 to 30 days and may take about 30-45 days to close.
When does it make sense not to wait?
Amongst many other reasons, one of the dominant reasons why it will make sense for the seller not to wait to sell is when they are near foreclosure and their financial situation is uncertain.
When is it a good idea to pay cash?
It makes sense to pay in cash. Although some people and markets may benefit from paying all cash for a home, it also makes sense to make sure you also weigh the drawbacks.