If you’re on the fence about selling your home but aren’t sure if it is the right time, this post is for you. Below you’ll find questions to ask yourself with the answers to help you determine if the market is in demand for properties like yours, or if it is for other styles and you should wait to sell.
To start, you must stratify your property. Doing so is easy. All you need to do is look at local listings and break the properties into groups based on their size and features. Consider the room count, garage, square footage, age, amenities, and condition. When you do this, you’ll find that different properties list in specific price ranges and see what the original prices were, asking prices are and how long each has been on the market. By doing this you’ll be able to see if similar houses to yours are in fact in a sellers market or not.
What is a seller’s market?
A seller’s market is when there are more buyers than sellers. Demand exceeding supply gives sellers the advantage as buyers will compete with one another to secure their desired property.
Bidding wars are much more common in a seller’s market, and the result is often homes selling for more than the asking price within exceedingly short periods—many home sales can occur in 45 days or less when they would normally have taken 90 days.
It’s crucial to stratify your property as not all properties are subject to a seller’s market at the same time. For example, homes in the $400,000-$500,000 range might be subject to a buyer’s market at the same time that homes in the $100,000-$200,000 range are in a seller’s market.
In other words, if you act based on what’s occurring for incomparable properties, chances are that you won’t get as good of an offer or finalize the transaction as promptly.
Signs it’s time to sell your house.
Below you will find a list of 9 signs that tell you it’s the perfect time to sell your home:
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Monitor the speed of sales on listing sites.
Redfin, Trulia, and Zillow are three powerful tools for this process. Familiarize yourself with them as you will want to refer back to them for multiple reasons.
The first reason being that you can monitor how fast properties are selling as they provide you with information regarding how long properties have been listed. If most houses stay listed for in excess of 45 days, it’s generally a sign that it’s a buyer’s market. If homes list for shorter periods, it’s a seller’s market.
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Increased asking prices.
Read the asking price and sales prices on properties and see if the paid price is above or below. Then, look to see what the percent increase is over two years ago, five years ago, and 10 years ago. If the average selling price is much higher, for instance 20% above asking prices historically, now might be a good time to sell.
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Homes selling for above list price.
Just because asking prices are increasing doesn’t mean sellers have the advantage. For example, asking prices can increase in a buyer’s market for many reasons, but buyers can still have the opportunity to buy a home for less than what the seller asks.
However, when buyers are paying more than the list price, it’s time to put your home on the market.
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Keep track of open houses in your area.
Open houses happen at all times of the year, regardless of the market. However, if you notice that they are popping up more frequently and aren’t open for quite as long, it’s another tell-tale sign that the market is in your favor.
You can use listing sites to aid you with this as agents post open house dates and hours along with listings.
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Seasonality.
If you live in the northeast then you’ll see more houses going for sale in the summer when it is easier to tour and be outside vs. winter when it is cold and moving homes with freezing temperatures and ice on the ground. Moving is likely the last thing on someone’s mind. People are more planning on celebrating with friends and family in their homes, at least in early winter.
College campuses and military bases can also impact the housing market. As campuses fill up for the spring and fall, rentals are in massive demand driving up rent costs. This could mean more people are tired of hikes and looking to buy.
Of course, all of this is subject to your local area, which is why you need to familiarize yourself with market trends specific to your city.
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Market health is in your favor.
Market health is a big deal as it tells you that folks are likely selling homes they had no plans of moving out of simply because the time is right.
A way to judge the market is the number of distressed properties listed. If there are more than you usually see, not necessarily more than traditional listings, it’s usually a sign that buyers have the advantage. Conversely, as these listings dwindle compared to others, it’s generally a sign that it’s a seller’s market.
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Homes selling by word of mouth before listing.
Keeping your ear to the ground is just as crucial as referring to listing sites. If you hear people talking about how their home sold before it could list on one of those sites or shortly after that, there’s a good chance that it’s currently a seller’s market.
However, judgment is vital in these scenarios as highly desirable properties are bound to attract buyers much more quickly than the average home in town.
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Influx of building.
If you’re noticing several new building projects in your area, it’s usually a sign that there’s an influx of home buyers. Homes going up, infrastructure changes, schools being built, and so on are signs that more people are moving into the area than it can currently accommodate.
It’s also worth noting that new tech companies appearing usually means new workers. They are usually willing to be as competitive as possible to secure a property since their livelihood depends on it.
If all of this is popping up you’ll see a very quick spike, but you may want to hold off on selling your home until you start to reach the peak. That can happen once construction is done, PR and advertising begin and demand really surges.
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Physical Signs.
Not everyone has time to be glued to their phones or computers. Work gets in the way. However, you can make use of your commutes and lunch breaks by taking a look around the neighborhood. If you see for-sale signs popping up and going down relatively quickly, it’s a good sign that it’s the perfect time to sell your home.
