Is It Still a Good Time to Sell Your Home?
Mortgage rates rising, inventory dropping … is it still a good time to sell your home? Most experts agree that last year’s hot real estate market will stay strong, although it won’t be quite as active as it was in 2021. If you’re considering the question but aren’t sure whether it’s a good time to list your home, consider the following questions.
1. Comparative Prices vs. Your Finances
Financial considerations don’t necessarily have to be your first concern but don’t give them short shrift. If you’ve got equity in your home that will translate to a healthy profit after a sale, given the sales of comparable properties in your area, it’s better to sell now than to wait for the market to cool off significantly.
That’s especially true if you’re near retirement age. For older owners who have held onto their homes for a few years, the recent real estate boom might have yielded a considerably higher amount of equity for you. If that’s the case, selling now is worth a thought. Given a healthy home value, based on comparative sales or an appraisal, you can maximize your retirement funds with a quick sale.
2. The State of Your Home
It’s possible to sell your home quickly and for cash, without making any significant improvements or repairs. On the flip side, you’ll probably make less money on the sale than you would with a traditional listing.
While a quick sale—for example, to an iBuyer who will happily take the home “as-is”—doesn’t necessarily need you to engage in extensive improvements and staging, there could be basic repairs that should be made to maximize your sales price. Uneven flooring, holes or cracks in the drywall, or nonfunctioning windows or appliances may need to be repaired or replaced in order to get the best offer possible.
And if you’re more interested in a traditional listing for a financed offer, you’ll want to not only make needed repairs but also clean thoroughly, declutter, and stage each room. You may also be encouraged to paint your home’s walls a calming neutral tone, as that generally helps your potential purchasers see themselves living in the space.
Whatever scenario you’re most interested in pursuing, make sure you have the resources to declutter, clean, and stage your home to whatever extent might be necessary. However, you don’t need to make this decision in a vacuum. Contact a real estate agent early enough in the process to help you with this and other decisions related to selling your home.
3. … Or Your Home Needs a Lot of Work
Contrarily, if your home needs some work, that itself might indicate it’s a great time to sell. In a seller’s market, with low inventory and rising home prices, you as the seller have a substantial amount of bargaining power. Even if your home isn’t at its very best, it’s likely that you can find a ready and willing cash buyer who’s willing to take your home off your hands without a lot of pricey repairs and improvements.
When a market suffers from a dearth of inventory, many buyers (including iBuyers) are more amenable to accepting properties that need a bit more than a tune-up. If you’re looking for a quick cash sale, the time is still likely to be favorable for you to get a decent offer.
4. Your Housing Plans Post-Sale
Low inventory is a double-edged sword, unfortunately. While it means your home doesn’t have much competition, it also means you might have a difficult time finding a home to move into after you sell yours, whether you’re staying in the area or not. What’s more, rents are also rising. In some cases, rents exceed mortgage payments. If you plan to rent, make sure your post-closing finances are up to the challenge.
You may also want to inquire of your buyer if they’ll entertain a short-term lease-back arrangement while you look for a new place, if need be. Many commercial purchasers are happy to entertain such deals if the terms are right, and this will help give you a little more breathing room before you have to vacate the property.
Provided by When To Contact a Realtor to Sell Your House