Are you wondering if now is the right time to sell your house? Read on and learn about the factors you should consider before making this important decision.
The past several years have been a rollercoaster ride for homeowners, potential buyers, and virtually anyone with an eye on the real estate market. To summarize: We saw a period of low interest rates and historically high sale prices across the country. Then we saw mass migrations, which drove up home values in many surprising places (and created boom towns in already popular locales).
Now, in the early months of 2024, it seems we’re seeing a sort of market stabilization as mortgage rates come down and prices cool off. For buyers, now might feel like the perfect time to strike before the market does another loop-the-loop. But many sellers are asking, “Should I sell my house now, or wait and see what happens?”
While the answer to this question will vary from person to person, a few determining factors define the “right time” to sell a house –– which we’ll explore below.
Many parts of the country are in a seller’s market, meaning there’s more housing demand than supply, and prices are elevated as a result.1 But just because the current housing market favors sellers doesn’t mean homeowners absolutely must sell now. Deciding to sell your home is never a one-size-fits-all answer: it's a deeply personal decision influenced by various factors unique to each homeowner. These factors can range from financial considerations to lifestyle adjustments, and understanding your own motivations for selling is key to making the right decision.
If you’re like many American homeowners, your current financial standings will be one of the biggest factors in deciding whether to sell your home now or wait it out. Some deciding to sell may seek to consolidate or eliminate other high-interest debts using their sale proceeds. Others may be able to profit based on their percentage of equity and current market values. When deciding if now is the right time to sell, consider if a sale will financially benefit you in the short and long term, and if your current share of home equity will allow you to walk away from a sale in the positive.
As we’ve seen in the past few years, shifts in the market can be dramatic. Further, regional changes can differ greatly from national trends, making your decision to sell your home different than that of someone in a neighboring state –– or even a nearby county. To decide if now is the right time to sell, stay up to date on both local and national real estate market trends to not only understand the present state of the market but also to predict potential sale outcomes. Is the market in your area favoring sellers more than usual, with exceptionally high demand and low supply? Or are you in more of a buyer's market, where homes are lingering longer, and prices remain on the lower side? These regional conditions, on top of national market trends, can have a significant impact on the timing of your sale, so think locally while keeping an eye on the big picture.
Be it a new job in a different city, the decision to start a family, or the desire to downsize, variables in your personal life can weigh heavily on the decision to sell. When these circumstances align with ideal market conditions, the decision can feel like kismet; when the timing isn’t quite right, waiting can feel like the only option. Evaluate how your current home fits into your lifestyle and future plans –– and how well selling your home aligns with your personal life –– to decide if now is the perfect time to sell.
What makes it a good time to sell a house? While selling a home is a personal decision, there are certain conditions where this strategy makes more sense. And when the personal benefits and market conditions overlap, well, a sale’s timing may be just right.
As mentioned earlier, if you're in a strong seller's market –– where demand outpaces supply and prices are elevated –– you might find it's an ideal time to sell. This is because homeowners in these markets are more likely to get multiple competitive offers and sell their homes more quickly. If your area is seeing an influx of buyers due to economic or lifestyle factors (or some combination of both), selling your home will allow you to capitalize on this surge in popularity. However, keep in mind that you’ll soon be a buyer in this market if you plan on staying in the area.
Single-family homeowners have accumulated an average of $225,000 in home equity in the last decade.2 So, if you’ve owned your home for a decade or two, selling your home could mean realizing a substantial profit. And if you’ve invested time and money into improving your property, your gain could far outpace the national average of over $200,000. Consider what you stand to gain from selling your home, as now could be a good time to maximize your return on investment.
Selling a home and relocating can put a great deal of stress on homeowners –– particularly those with families –– who must take variables like school schedules, jobs, and social support systems into consideration. So, when the end of a school year or the start of a new job coincides with ideal market conditions, there may simply be no better time to sell, marking a fresh start with a new home.
At the end of the day, selling your home and moving is a big decision, and one you should only make if you’re absolutely ready. Whether that means financial, emotional, or physical readiness will depend on your situation, but waiting until the time is right can set you up for success in more ways than one. Ensure your own financial security, make a pros and cons list, build a plan –– do whatever you need to guarantee you’re ready for whatever comes next and you’ll enter this next chapter with your best foot forward.
Just as there’s such a thing as a “right” time to sell, there are also conditions that create a “wrong” time. Understanding these conditions can save you from making a hasty decision that may not serve your short- and long-term goals.
In a buyer’s market, the housing supply is high while prices (and, ideally, mortgage rates) are low. Selling in such a market could mean sacrificing profit, or enduring a lengthy sales process. And while patient sellers may not necessarily mind waiting for the right buyer to come along, lingering on the market for too long can do serious damage to your home’s value –– as buyers may grow wary that there’s a reason for the lack of interest.3 With that said, many home sellers are also buyers, and you may find that the perks of being a buyer in a buyer’s market outweigh the negatives of being a seller.
There are aspects of your home’s value you can control by tackling value-adding home improvement projects. Then, there are factors –– like commercial developments in your area or migration trends –– you cannot. Either way, if you have an inkling that your home’s value may be on the rise, it could be wise to hold off on selling.
Fast as some of this growth may seem, development tends to happen slowly, so keep an eye out for new schools, the expansion of transportation infrastructure, new commercial centers, or the arrival of larger restaurant chains, as these may all have a positive impact on your home’s resale value. Want to stay ahead of the curve on local development? Consider leafing through local business journals or trade publications to see what movers and shakers may be bringing to your area. Then, it may be worth asking yourself: What will my home be worth in 10 years? This can help inform your decision to sell.
Selling a home and moving into a new one can be a major undertaking even under ideal circumstances. The process is also quite expensive –– more than $5,000, in some cases.4 If you’re currently facing financial uncertainty or working on improving your financial wellness, you might find that you’ll be better off waiting to sell. But this doesn’t mean you’ll have to wait forever! If moving is your dream, make it a reality by setting long-term financial goals that you can work toward.
In the years or decades that we live in our homes, we create memories, forge friendships with neighbors, and build entire lives. For this reason, the decision to sell is not solely about financial or market factors, but also your attachment and emotional readiness. Open a dialogue about selling your home with your family. If you or your family are strongly attached to your current home, it might be worth waiting until everyone is ready for the change to ensure a smooth transition and a happy start in your new home.
Whether you’ve found that now is the perfect time to sell or you’re planning to wait, there are several strategies you can employ to make the process smoother –– and potentially more profitable –– whenever you’re ready.
The first step starts with first impressions. Enhancing your home’s curb appeal is a great way to entice buyers, as your home’s front fascia will likely be the first thing people see, whether they’re clicking through photos online or visiting in person. Something as simple as a fresh coat of paint or professional landscaping can go a long way toward impacting a potential buyer’s first impressions and, therefore leading to better offers.
Just as a new paint job or some professional lawn care can give your property a visual lift, tackling some minor home upgrades can pay off when it comes time to sell. We’re not talking about replacing your roof or repaving your driveway. Rather, focus on everyday touchpoints –– lightswitches, faucets, and other fixtures. If needed, you may want to install updated appliances, but any improvement you can make will help market your home and steer you toward a quicker sale.
Even when sellers are at a clear advantage, staging your home can go a long way toward improving your sale price and expediting the sale process. In fact, according to information from the National Association of Realtors, many of those who invested in professional staging saw as much as a 15 percent bump in asking price.5 A well-staged home can entice a prospective buyer by helping them visualize themselves living in the space. And while you can stage your home yourself, a professional stager can help elevate your space by decluttering, rearranging furniture, and adding neutral decor.
These days, most homebuying searches start online. So, where yard signs and fliers may have helped a home sell in the pre-internet age, selling your home now requires a compelling online listing –– complete with high-quality photography that captures each of your home’s best features. If your home marketing budget is slim, you can elect to take these photos yourself. However, you may find opting for a professional real estate photographer to be well worth the investment.
Setting the right sale price for your home is crucial –– and it’s a more scientific process than you might think. Price your home too high and you could struggle to find a buyer, even in the current market. Too low, and you could sell your home quickly but leave thousands on the table. Arriving at a competitive price somewhere in the middle will require a thorough analysis of your home’s condition and the local real estate market. While it can be challenging to properly price your home, a home appraisal can help you arrive at a price befitting your property. And for even greater accuracy, you may want to enlist a real estate professional who will factor comparative sales into your listing price.
In some ways, it’s easier than ever to market your home. Listing sites like Zillow are easy to use (and free, should you choose to list for sale by owner), putting your property in front of qualified buyers and those simply dreaming about their next property. Social media, too, exposes you to a broader audience than the aforementioned yard sign might. But while utilizing these free tools can help you find buyers, an expert real estate agent will help you maximize your reach while ensuring your property stands out from the rest.
Selling a home as a homeowner might not require much actual “selling,” but a little customer service can still go a long way. This is especially true when it comes to showings. Should you choose to work with a real estate agent, they’ll handle things like arranging showings –– but some flexibility on your end will help accommodate as many buyers as possible. It might be inconvenient to have strangers in your home at inopportune times. But the more people see your home, the higher the likelihood of receiving strong offers (and completing a quick sale) will be.
As evidenced by the above, there are many, many factors influencing the “right” or “wrong” time to sell a home. What’s more, these myriad variables often cancel each other out. Current market conditions could allow you to maximize your return on investment by selling, but if you’ve just started a new job or your child is halfway through the school year, this timing simply won’t work. Alternatively, the perfect property may have hit the market across town, but the expenses (and stresses) of moving could have you leaning toward holding off. Truehold’s sell and stay transaction can be the solution for homeowners in this all-too-common timing predicament.
Our sell and stay transaction lets you sell your home when the time is right, and then move when you’re ready. This lets you take advantage of ideal market conditions, getting the most out of your investment, but with the added flexibility of transitioning on your own time. While you wait to move until you’re ready, you can remain in your home as a renter –– and we’ll take care of things like essential repairs and property taxes.
If you’re having trouble deciding whether to sell your home now or wait for all the stars to align, Truehold lets you make your own “right” time. Learn more about our sell and stay solution to leverage your home equity by connecting with one of our representatives.
Sources:
1. Forbes. Housing Market Predictions for 2024: When Will Home Prices Be Affordable Again? https://www.forbes.com/advisor/mortgages/real-estate/housing-market-predictions/
2. National Association of Realtors. Single-family Homeowners Typically Accumulated $225,000 in Housing Wealth Over 10 Years. https://www.nar.realtor/blogs/economists-outlook/single-family-homeowners-typically-accumulated-225K-in-housing-wealth-over-10-years
3. Yahoo! Finance. What Happens When Your Home Stays on the Market Too Long? https://finance.yahoo.com/news/happens-home-stays-market-too-110033464.html
4. Forbes. How Much Do Movers Cost in 2024? https://www.forbes.com/home-improvement/moving-services/movers-and-packers-cost/
5. National Association of Realtors. Why Staging Matters, Even in a Seller’s Market. https://www.nar.realtor/blogs/styled-staged-sold/why-staging-matters-even-in-a-sellers-market
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