Is now a good time for you to sell? There are four factors to consider when asking that question.
The first is your mindset. This has been one of the most challenging aspects of our market shift. When I say “market shift,” I mean we’ve been in an aggressive seller’s market for the past six years, but we’ve reached the peak of the market and now we’re transitioning into more of a normalized market. With this, sellers are struggling with the idea that their home won’t attract multiple offers and sell for $10,000, $20,000, or $30,000 more than the last sale. They’re also getting frustrated that their homes are taking longer to sell.
All of this is to say that you need to have the appropriate mindset and appropriate expectations when selling, and you need to figure out what the market is like in your area.
The next factor to consider is inventory, which has generally increased. In some areas, it has spiked by as much as 40%. What’s the demand like in your area, though? Do buyers have a lot of choices or fewer choices? Supply and demand is a basic economic principle—the more of something there is, the less it’s worth. If you live in an area where your home is the only property for sale, you might be able to be a bit more aggressive with your sale, especially if you live in a very attractive area. If you live in an area that features several other listings, though, you’ll need to price your home accordingly or you’ll have a tough time selling it.
The third factor to consider is interest rates. Interest rates matter to sellers just as much as they do to buyers. You can’t sell your home unless you sell it to a buyer, and most of the time, a buyer can’t buy your home unless they get a loan, and what’s associated with that loan is the interest rate. A home’s price is a one-time fee; what really matters is the interest rate. As rates go up, buyers can afford less, and the buyer pool for your home gets smaller and smaller.
Finally, consider pending sales, or how many homes are selling per month. Across the county, pending sales are down 25%. Not only are fewer homes selling, but in many cases, they’re taking longer to sell.
So, is it a good time for you to sell? Maybe it is and maybe it isn’t. Now that you have this information, your next step should be to talk to a local Realtor. I’d be happy to share my expertise with you, give you a free consultation, and come up with a detailed plan of attack if you decide that selling is in your best interest.
Selling a home requires two things: price and exposure. You have to make sure buyers in your area are attracted to the price you set and that the agent you’re working with exposes your home to all the buyers who are out and about. Like I said, the market is shifting, so who you work with is crucial in getting your home sold for the best price.
As always, if you have any other questions about our market, don’t hesitate to reach out to me. I’d be glad to help you.