Your home is an investment and is likely the largest asset you have. Selling your home to gain access to the equity might be the right choice for you financially. But how do you know when it is the right time to sell? Property values go up and down, and timing the market right can mean more cash in your pocket after closing the sale.
Here are some indicators of when it is the right time to list your house for sale.
1. Listings don't last long in your area.
Check online listings to see how long they sit before they are listed with a pending offer. Some houses might sell the same day they are posted for sale. Others might sit for a week. Others might be listed for a month or longer. Look how closely the houses that are selling fast match the features of your own home. If houses in your neighborhood are selling quickly, it's a sign that there is a high demand for your home, with plenty of interested buyers out there. If houses are sitting on the market for a while, it might be better to wait until the market picks up a bit.
2. Interest rates are low for buyers.
Low interest rates make it easier for buyers to afford and get financing for a house, which increases the pool of buyers in your area. If interest rates are low, it might be a good time to consider selling your home — not just because it has a better chance of selling, but also because it will be easier for you to get a good rate on a new home if you plan to buy again with some of your equity as a down payment.
3. It's the right time of year.
Houses sell better when listed in the springtime. Buyers are more likely to offer close to the asking price in order to lock in their offer during a competitive real estate season. On the flip side, houses tend not to sell as quickly or for as much money during the winter.
4. Your real estate agent has had a lot of inquiries about new listings.
When you reach out to a real estate agent about selling your house, they will have insight into how well your home will do when listed. They might have had a lot of buyers contact them about finding a new home to buy, and they'll give you a good estimate as to whether or not selling is the right plan for you.
To learn more about selling your home, contact a real estate agency like Berkshire Hathaway HomeServices - The Taliesyn Team.