Sell your home. It sounds so simple and easy, but it’s really not.
If you’ve been wondering, “when you should sell your home?”, you’ve come to the right place. I’m here to talk about the process of selling your home along with other considerations to help you determine how to time this properly.
First, I’d like you to know that selling your house, no matter when, can be a stressful process. This can be even more painstaking the longer you’ve lived in your home. In spite of your emotional attachment to your house, you may still need or want to move for one reason or another.
Maybe you got a new job and have to relocate or you need more bedrooms to make space for new children or an ailing parent. Perhaps you’ve got too much space on your hands and need to downsize.
Regardless of the reason, after you’ve come to this decision, next you’ll need to determine when is the best time to put it on the market. There is no perfect answer to when you should sell your home. What works for one person may not work for another; you just want to make sure your house isn’t lingering on the market any longer than it needs to. The fact of the matter is – the longer a property sits on the market, the harder it can be to sell.
Why, you may ask?
For some buyers, they could be suspicious of any houses that don’t seem to have gotten a lot of interest. They could come to the conclusion if it hasn’t been snapped up then there could be something wrong with it.
When you should sell your home can be evaluated based on the season, not only from the perspective of driving demand but also to sell it for the highest amount of money you can.
So, when IS the best time of year to sell.
The general consensus from a national perspective is in early May. It’s been found the houses listed in late spring/early summer sell faster and often times, for higher prices. REALTOR®’s generally try to list towards the end of the week so they can fill it with showings over the weekend and increase the number of prospective buyers who come through it.
Now, let’s also consider when you should sell your home based on your specific location. This really depends on where you live. Here in Canada, most regions are subject to four seasons and with that, the preference to buy tends to lean towards the warmer months from spring to fall. If buyers have children, they also prefer to move in the summer so their kids don’t have a disruption in their school year.
This said, the best time of year to sell a house will be a little before the best time of year when it can be enjoyed. Think about the type of buyers your home may attract and how you, as the seller, can be position the home and its utility to be attractive to them. Of course, working with a REALTOR®, will help you through this process considerably.
Now, keep in mind, buying and selling real estate is not always so clean cut. Just because summer may be a better time of year to sell may not actually be when you need to sell. So, lets take a look at considerations that may apply to each of the seasons, starting with winter, since that’s what we are in the midst of right now.
Winter Home Sales – Selling in the winter is generally not a desirable time, however, this winter has seen homes selling for tens of thousands to hundreds of thousands over list price because the demand is so significantly outweighing the supply. This is not the norm we have seen over the past several years. Some buyers could be especially interested since there is less selection on the market.
Spring Home Sales – This time of year can be great, not only to showcase the best your home has to offer with blooming gardens, green lawns and fresh curb appeal but also to attract the highest number of offers. As a result, homes can expect to sell for more money at this time of year compared to others. A potential drawback is that a lot of other homes could be coming on the market at the same time, giving buyers a bigger selection to choose from. Sellers have to work with their REALTOR®’s to pay close attention to comps to make sure the house is priced appropriately.
Summer Home Sales – There could be less competition for sellers in the summer compared to the spring. Any families looking to buy before the beginning of the school season could also be desperate and looking for a shorter closing. If there are homes leftover from the spring, it’s a likely possibility that they are over priced, giving new sellers the chance to price their homes more competitively. Summer is short and a lot of buyers could be on holidays, limiting the number of people who may pass through your house.
Autumn Home Sales – real estate sales tend to trend downwards in the fall. Housing supply is often lower but so is the demand in most cases. If any sellers haven’t been able to find a buyer for their home, there is the chance they may decrease the price with the hopes of selling now. As a result, as a seller, trying to decide when you should sell your home, you may also be faced with the decision to lower the price of your home below market value. Buyers could be looking for deals.
So, how do you know when you should sell your home and what’s the right timeframe for you?
While it would be nice to sell your home at the very best time of year, sometimes this isn’t possible to align perfectly with life changes that may occur.
Let’s consider these now:
Needs/Wants – moving isn’t always based on numbers alone. If you have children, maybe you’d like to move so they can go to a better school or you’ve landed a new job and want to reduce your commute. Perhaps your family is growing and you need more bedrooms/bathrooms. Whatever the reason may be, your home should meet your needs/wants. If the home you’re living in now doesn’t fit the bill, when you should sell your home could be sooner rather than later.
Can’t Change the Bones – even if you’ve invested time and money into renovating a home, it may still not meet your needs. You can’t necessarily turn a back or side split into an open concept, increase the size of your yard or distance from your neighbours. The good news is if you’ve remodeled, you should get more money when you decide to sell your home.
Finances – if you’ve lost your job or retired, maybe you’re finding it difficult to manage the carrying costs of owning your own home. Alternatively, maybe you got a big promotion and can finally afford your dream home. Whatever end of the spectrum you’re on, your finances (or lack there-of) may have an impact.
Stage in Life – as you move along from the life of a single professional to starting a family, you’ll likely need more space. Kids come with a lot of stuff and as they multiply in number, it’s natural to want room to spread out. But, kids grow up and move out eventually. As this phase arrives, you may no longer need or want the space you had when they were all at home with you. When you should sell your home could be impacted by the desire to maintain less property and owe less money when it comes to taxes, utilities etc.
If your kids have grown up and moved out, you may want to consider selling your home and purchasing a smaller one. Downsizing can dramatically reduce your housing budget. With a smaller home comes lower taxes and utility bills. So, if you’re looking to cut housing costs, it may be appropriate for you to sell now regardless of the season.
So, when should you sell your home?
The bottom line is there is no right answer. Although seasonality can impact supply and demand, as population grows, the supply simply can’t meet keep up with the demand. At the end of the day, you need to do what is best for you. An experienced REALTOR® can help.
Thinking of making a move? Let’s chat – 647.896.6584. And for more on my background and how I operate, click here. In the meantime, feel free to find out what your home is worth.
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(Photo credit – Cornerstone Architects)
