When is the right time to sell your house?
Want to get top dollar for your home? One way is to know the best time to sell. Every situation is different, but to get the best price for your property, you鈥檒l want to match a good selling situation with good market conditions.听Here are six ways to know the time is right.
1. You have some equity in your home听
Your equity is the value of your home minus any home loans. So if your property鈥檚 worth $250,000, and the mortgage balance is $200,000, you鈥檇 have $50,000 in equity.
If your home鈥檚 sale price would be enough to pay off your mortgage and related selling costs, and you wouldn鈥檛 need to pay any additional money out of pocket to close the deal, it could be a good time to put your home on the market.
But if not, it might听be better to wait until your home increases in value, you pay down the mortgage, or both.听
According to real estate research firm CoreLogic, in the third quarter of 2015 about 8% of residential homes with mortgages were听underwater, meaning the amount an听owner owed on the mortgage was听greater than the home鈥檚 market value. But that鈥檚 an improvement from听the same period in听2014,听when the figure stood at around 10%. It suggests that many homeowners are increasing their equity and could soon be in a good financial position to sell.
2. You can afford to move
When you sell, there will be costs. You鈥檒l probably have to pay real estate commission of around 6% of the sale price. Moving expenses can easily exceed $1,000, and your buyers may even ask you to pay some of their听. If you plan to buy your next home and apply for a mortgage, you鈥檒l also need to have enough cash after you sell the house to make a down payment.
If you鈥檙e short on funds and might have problems paying for some of these expenses, even after you sell your home, it might听be better to wait and save up before you put it on the market. And you might also build equity as you pay down your mortgage.
3. You know there are potential homebuyers.听
You鈥檒l want to list your home when buyers in your area are looking.听In a recent five-year period, 39% of homes with spring listings went under contract within 30 days, and 15% sold above list price, according to real estate brokerage firm Redfin. But the winter season was nearly as busy, with 38% of homes snapped up within 30 days, and 14% selling above list.
That said, sunnier days and milder temperatures can make house hunting easier, so many buyers begin their search during those听times of year. If you list your home when there鈥檚 more demand, you鈥檒l have a better chance of getting the best price possible.听
Better weather also can help your home鈥檚 curb appeal, as听you鈥檙e more likely to enjoy lush landscapes with blossoming flowers and trees. This can help your home seem more attractive to shoppers.
Just know that other sellers might听have the same idea, so there鈥檚 likely to be competition. You鈥檒l want to make sure your home looks its best and is priced competitively when you put up a 鈥渇or sale鈥� sign.
4. Home-improvement projects are complete
You鈥檒l want to wrap up any unfinished remodeling jobs before you put your home on the market. The investment can be worth your while. Smaller projects, including painting kitchen cabinets or upgrading a bathroom sink, sometimes come close to paying for themselves by increasing the value of your home, which can translate directly into a higher asking price when you sell.
As for larger projects, you probably don鈥檛 want to complete a full renovation before selling your home, because your tastes might not match a buyer鈥檚 style. But if you need to do major work to make your home functional, such as repairing an HVAC system or replacing a roof, it might听be better to focus on听听those projects before listing your home for sale. Prospective buyers听might听not expect to have a completely new kitchen or bath, but they鈥檒l want to know the home鈥檚 in good condition.
5. Your home no longer matches your life
Are you expecting a child 鈥� or other relative 鈥� to be a part of your family in the near future? You might need more space. Or, if you鈥檙e an empty-nester, you might听decide your house is too big, requires too much upkeep and that you could benefit from downsizing. Maybe you鈥檙e satisfied with your property, but it鈥檚 in an inconvenient location and too far from friends and family.
Whatever your situation, if your home and neighborhood no longer fit your needs, the time is probably right to sell and find a location听that鈥檚 better for your lifestyle.
6. You don鈥檛 have to sell your house fast
If you鈥檙e a motivated seller 鈥� say, you have to relocate within two months 鈥� and the buyer finds out, he might offer you less for your home than it鈥檚 worth because he鈥檇 know you鈥檙e burdened to close the deal. 听But if you鈥檙e willing to wait for the best offer, you have an advantage. You might听be able to sell your home for the highest possible price.
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